How Crowdfunding Works For Entrepreneurs – Forbes

How does crowdfunding work for startup entrepreneurs?

Crowdfunding exploded onto the internet a few years ago. Since then early platforms like Kickstarter and Indiegogo have seen hundreds of new crowdfunding platforms emerge onto the scene, fueled and transformed by the new JOBS Act. How can this help entrepreneurs launch and grow their startups? How does this fundraising strategy compare to other options? What do you need to know before you try it?

What is Crowdfunding?

As the name suggests, this is all about engaging the crowd to co-fund projects and startup ventures. Funding can be provided by tens, hundreds or thousands of individual investors, as well as institutional investors and the…