Fail Fast or Win Big

CHAPTER SEVEN

Entrepreneurs Have a New Investor: The Crowd

The traditional ways of creating and launching an entrepreneurial company still exist, but the world of start-up funding has changed forever. Crowdfunding, which is the raising of capital primarily through an Internet platform in the form of donations or investments in exchange for future products, lending, or equity, has opened up opportunities never before possible. But let’s take a look at what was available and now what is possible.

TRADITIONAL SOURCES OF FUNDING

In the not too distant past, if you needed some money to start a business, you’d look to several sources. First, you might examine your savings or, perhaps a bit riskier, you could leverage your credit card. Or, you could ...