Wed, 23 February 2022
What Is Crowdfunding?
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.
Crowdfunding refers to fundraising in which you can raise funding from anyone and not just accredited investors.
Typically, these investors fund early-stage companies in various ways.
Here’s a list of the different types of crowdfunding:
A startup can use crowdfunding to find investors for all of these types of crowdfunding.
Crowdfunding allows startups to raise capital from the broader market and structures the raise so it fits the needs of the company.
It is often called community funding, as the startup reaches out to its own community to find funding.
Investors often invest in smaller amounts.
Given the large number of potential investors in crowdfunding, a startup can raise substantial amounts of funding.
Crowdfunding gives more startups the opportunity to raise funding and more investors the ability to participate.
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