Chapter 2
Evaluating Crowdfund Investing Opportunities
In This Chapter
Doing your homework on investment possibilities
Falling back on common sense
Turning on your fraud detector
If you've never invested in start-ups and small businesses before, crowdfund investing may seem really exciting. After all, you have the chance — perhaps for the first time — to put your money directly behind an entrepreneur's concept or into a small business that seems poised for great things.
A word of caution: Take your time, become very educated about the opportunities themselves and the risks involved, and stay on a strict budget if you decide to invest. Before you jump into any investment, stop and repeat the following:
- I will invest only in people I know and trust.
- I will invest only in products or services I will use myself or believe will have real value for others.
- I will invest only in businesses for which I am willing to be a marketing engine or help out in some way.
- I understand that this is a long-term investment, I may never see my investment, and if I do, it may be a long time off and may not be the amount I put in.
- I am investing only as much as I can afford to walk away from or lose ...
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