Before You Opt for Crowdfunding, Understand the Core Concerns

by Inc

Crowdfunding considerations range from the idiosyncratic to others that are emblematic of the industry at-large.

Any entrepreneur looking into crowdfunding must be aware of all the pros and cons before moving forward. As with any other funding method, remember that fundraising is a multi-inning game. Niel Robertson, founder and CEO of Trada, explains this and other ideas in a recent post on crowdfunding.

A company that is fortunate enough to experience substantial growth is likely to need multiple rounds of financing. And if you’ve sold off all of your equity during early-round funding — whether crowdfunded or not — you’re not sitting pretty. Another important fact to remember is that crowdfunding is designed to bring in numerous investors. That can grow into a rather large problem if there’s any dissent. For more on the core concerns surrounding crowdfunding, read the full article by Robertson.

Related Content from OpenView:

The JOBS Act is poised to bring crowdfunding into the forefront. To get a fresh take on the perceived changes, read this article. Selling off too much company stock is bad. Find out why in this post from OpenView.