Becoming Part of the Crowd: Investing with Caution
In This Chapter
Fitting crowdfund investments into a diversified portfolio
Selecting candidates who deserve your money
Sniffing out signs of trouble
Figuring out (in advance) how long to stay invested
This chapter offers both entrepreneurs and investors some insight into how and why someone would make a crowdfund investment and the risks associated with it. And make no mistake: Investing in startups and small enterprises is risky business. No matter how well you may know the person seeking funds, or how rock solid the business proposal seems, you must proceed with caution and prepare for worst-case scenarios (all of which will lighten your wallet).
If you’re an entrepreneur, this chapter helps you better understand what’s going through the minds of investors who are considering whether to fund your campaign. You can take this information into consideration when crafting your business model and maximizing the investment opportunity it presents.
If you’re a potential investor, this chapter helps you begin to figure out whether ...