It’s market research. She makes a good point, that it’s a quick, inexpensive way to identify products with no market, relative to actually putting them in the market. On the other hand, sometimes products that don’t do well in the market as their primary function find some other killer app that no one anticipated. If it dies in crowdfunding, no one would get the chance to discover that sort of thing.
3 thoughts on “Crowdfunding Is Not A Scam”
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You are assuming it wouldn’t die anyway. Actually it has a better chance with crowding funding since the threshold for rising money is much lower than having to deal with real Angel investors.
Thomas, where do you see that assumption?
Because typical Angel investors are interested not only in your idea, but you entire business model, especially the financials. Even if the like the concept it is still an investment to them they expect a return on.
However in Crowd Funding there are really no such expectations of ROI beyond some perhaps a single item or sample of the service usually worth far less than what was invested. So without the expectations of monetary reward folks are not likely to be interested if the business model closes or not. This is why its possible to rise funds for riskier product or service ideas.