4 Crowdfunding Cautions for Small Businesses
A third issue to consider: Crowdfunding is a not a panacea to small-business financing. Just because you put your business on a crowdfunding site, doesn't mean that investors will want to back it. The business needs to be sound, experts say.
Another issue is the investors themselves. There is the now the potential for unsophisticated investors to get in on something they may think is an opportunity.
"If you get a bunch of people who don't really understand your business that could be a huge problem," Lendio's Blake says.
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-- Written by Laurie Kulikowski in New York.
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