A new era in funding is here, and it’s making headlines. From presidential campaigns to technology devices, crowdfunding presents unique opportunities for businesses and investors alike.
The origins of crowdfunding date back to the Jumpstart Our Business Start-ups Act of 2012 (JOBS Act). The act permits companies to use funding portals to access non-accredited investors. Access, liquidity and fractional ownership permitted under the JOBS Act can broaden a funding pool, but your organization should consider the funding source with some degree of skepticism. Both investors and the investment portals are largely untested, which makes crowdfunding a riskier source of investment. Before making a decision about whether to pursue crowdfunding, it is recommended you conduct a careful analysis of the three core benefits and their risks.
