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: