The Potential Perils of Crowdfunding
Crowdfunding is the dream solution for start-ups looking for finance. Join a crowdfunding platform such as Kickstarter or GoFundMe, create a sales pitch for your project, appeal for benevolent backers to offer a small amount in return for the promise of a reward when your project is realised and watch the cash roll in. This form of “donation-based crowdfunding” is the whip-round of the business world—and most of the time there’s nothing wrong with it.
“Equity crowdfunding has transformed equity investment in the UK.”