Entrepreneurs and would-be start-ups have embraced crowd funding for the access to seed capital, potential customers and market feedback that the model provides.
But some start-ups are bypassing the established channels and using their own version of crowd funding to directly control interaction with target markets.
Crowd-funding websites like Kickstarter, Pozible and Indiegogo introduce product or project pitches to an online audience that has the opportunity to support them financially.
Melbourne technology start-up Ninja Blocks raised more than $100,000 on Kickstarter in March despite seeking $24,000 initially to build devices that connect appliances – washing machines and lamps – to the internet.
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