Creative Alternative Financing – Crowdfunding & Crowdsourcing: Part I

On May 3, 2011, I participated in the panel discussion titled "Creative Alternative Financing - Crowdfunding & Crowdsourcing" at the 2011 MBE Annual Meeting organized by New York & New Jersey Minority Supplier Development Council. I was honored that my co-panelists were David Rose,...

Creating Alternative Financing – Crowdfunding & Crowdsourcing: Part II. What is Crowdfunding and Three Crowdfunding Models

Crowdfunding is a method of raising funds for a business venture or a project by requesting a small amount of money from a large number of people (typically through the Internet). An average amount of money raised is between $2,000 and $10,000. Crowdfunding is not a new phenomenon. We have seen it...

Creating Alternative Financing – Part III: Advantages and Disadvantages of Crowdfunding

Crowdfunding is just one of many ways of financing a business venture or a project. Like all other methods, crowdfunding has its advantages and disadvantages. Below I discuss some pros and cons of raising money through a donation-based crowdfunding platform. Pros In my opinion, the main and unique...

Creating Alternative Financing – Crowdfunding & Crowdsourcing: Part IV: Who is an Ideal Candidate for Crowdfunding?

In this post, I would like to summarize the information I posted previously about crowdfunding and discuss the kind of company or individual that would benefit the most from this type of financing. In the donor-based model of crowdfunding, it would be a person or a team with a creative novel idea, something...