What Is Investment Crowdfunding?

Nov 7, 2016

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.

Read the full guide on Quicken Loans’ Zing! blog here.