If you haven’t heard of crowdfunding, you might want to at least take a look at it. It could be an easy way to fund your startup.
The JOBS Act that passed earlier this year allows for greater use of small investors without restrictions. Crowdfunding, which is essentially appealing to a large group of potential investors via the internet, is one such funding source.
A number of websites have sprung up to facilitate crowdfunding, including Kickstarter, Indiegogo, Crowdfunder, WeFunder and Quirky.
The sites range from the informal to ones that are closer to traditional venture capital and angel investing, with formal review of business plans and approved entrepreneurs offering a stake in exchange for funding.
If you have an innovative idea, a strong business plan, social media savvy and a compelling incentive to offer potential investors, crowdfunding might be for you. But study the terms carefully and make sure you pick the option that gets you to your goal without giving away too much of your company.
Adapted from 5 Crowdfunding Sites for Entrepreneurs at Small Business Computing.