Crowdfunding New Business
October 22, 2014A friend of mine from California, Damon D’Amore, started hosting a new show for American Express. It’s called New Rules for Business and includes the episode above, Reaping the Full Benefits of Crowdfunding.
People often like to point to the poor cases of crowdfunding. It’s true that there are cases where a product wasn’t delivered, or wasn’t delivered well, or was an outright scam. That does happen, just as bad behavior or poor execution happens in every walk of life.
Yet, this is a powerful change in how to start a business and raise funds. Individuals can go out and get the money they need to start a new business without relying on the traditional model of raising funding. This means not giving away a stake in their business or having people to answer to besides the customers themselves.
Though I’ve never tried to crowdfund something myself, it’s one of the first things I’d look at before going anywhere else.
