Many entrepreneurs seems to be convinced that the “crowd” of regular people using the Internet will somehow solve their startup funding needs, when they sense a lack of interest from accredited investors. Professionals maintain that there is plenty of money for equity in qualified startups, and funding marginal startups via any source will only make more people unhappy.
Well-known crowd-funding platforms on the Internet, led by Kickstarter and Indiegogo, have worked for years to provide non-equity “funding” for many startups, as outlined in my previous article Will the Real Crowd Funding Model Please Stand Up?. But safely seeking equity investments from the crowd via the Jobs Act of 2012 is problematic and has still not been defined.
To read the full, original article click on this link: Startup Professionals Musings: Is Crowd-Funding the Answer When Investors Decline?
