Due to the inherent risk of an unproven venture, business start-ups rarely garner the support of the banking or investment community. However, if you can induce one group of individuals or one company to invest or lend, you can typically leverage that into additional funding. Why? Because people rarely want to be the first. Once they see that someone else is interested and felt comfortable enough to put their money in, the perceived risk drops.
So how do you get the first group to invest? With the JOBS act, crowdfunding will become a more popular way of doing just that – getting the first group to invest. Crowdfunding – and the marketing that goes along with it – can be a great method of enticing smaller angel investors to invest in your company.
Want to know more? Click on the link to read the remainder of the How to Crowdfund; 3 Essential Steps article.