Why Crowdfunding Scares Most Entrepreneurs, But Doesn’t Have To

AngelMore people than ever are starting their own businesses. And as all these newly minted entrepreneurs enter the world of being their own bosses, they are all starving for much needed startup funding.

Investors take two forms – angel or venture capitalists. Angles look more towards the person and their team, while venture capitalists focus on the ability to pay back their investment. For a percentage of equity in your business, and often a say in how it is run, you could sell your soul – I mean part of the ownership of your business – to either investor type, in exchange for some cash to get your business running.

I don’t know about you, but selling part of your business to get cash to start the thing always seemed counter intuitive. You do get the experience and contacts of those investors, but still you’re giving up a lot for that privilege.

Enter the wondrous and often misunderstood world of crowdfunding.

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