How To Crowdfund Your Startup
There’s a right way to approach crowdfunding, and a whole lot of wrong ways. Some of those wrong ways could lead to litigious customers, fines, and even criminal charges. So let’s talk about avoiding the most common mistakes entrepreneurs make when considering crowdfunding.
Crowdfunding is a welcome phenomenon in the startup universe. When I began my career in startup over 20 years ago, raising money was next to impossible unless you were tied into venture capital in Silicon Valley or New York, maybe Boston.
The contrast between then and now is stark and unquestionably positive for the entrepreneur. However, just because there are more VCs around with more money to spend doesn’t mean everyone gets funded. There are still way more investable startups out there than investment dollars.
Thus, the democratization brought about by crowdfunding is a net positive for the entrepreneur, but it has, of course, led to misunderstandings, misuse, even misappropriation — mostly because of misconceptions and mistakes, and there are plenty of those.
So here’s a look at some common crowdfunding mistakes that I’ve seen entrepreneurs make and what to do instead.
