ArborCrowd’s Adam Kaufman recently contributed a guide to investment crowdfunding in Quicken Loans’ popular Zing! blog, an online publication offering insights on home, money and life.
An excerpt from the article and a link out to the full guide on Zing! can be found below.
When you hear the word crowdfunding, you probably envision an online campaign with a polished promotional video urging you to “invest” in a product’s development. This is known as rewards-based crowdfunding, and it’s the most popular form, partly because anyone can participate and the barriers to entry are as low as $1.
With rewards-based crowdfunding, the best-case scenario is that an innovative product (such as an umbrella with a location tracker) hits production and you are one of the first people to have it. Like any investment, you still want to weigh the benefits and risks.