Essential Tips for Successful Crowdfunding

It seems like everyone is using crowdfunding to kick off their new business venture, whether it be a new coffee shop or electronic gadget. But the usefulness of crowdfunding is still debatable. Is crowdfunding even right for your business?

Here's some essential information and a few tips that will help explain crowdfunding concepts and how you can take advantage of them to fund your business.

What is crowdfunding?

Crowdfunding is a way of raising money for a new venture by soliciting small donations or investments from many people online. A group of people network and pool their money and resources together, usually via the Internet, to support the efforts of an organization. Unlike angel investment, in which an investor takes a stake (usually large) in a small business, with crowdfunding, you can literally attract a crowd of people - each of whom takes a small stake in a business idea by contributing towards an online funding target. This spreads the risk among backers and creates a strong network of support for your business...