Wicks, M. (2013). [e-Book] Crowdfunding – An Introduction. Victoria,, Promenade Crescent, 2013.
This eBook does not offer a complete guide to crowdfunding in all its guises; it is meant as an introduction to this fascinating way of raising money for product development, projects and companies. It focuses primarily on rewards-based crowdfunding for two main reasons; first it is the easiest form of crowdfunding to become involved with, and second it is the most relevant at this time to small business entrepreneurs. Although equity, or investment-based, crowdfunding is of interest to small business owners, it is currently fraught with difficulties. At present the only way to raise capital in this way is to go through sites that reach out to accredited investors. Unfortunately this is akin to looking for angel investors, and we all know how difficult that is. Rewards-based crowdfunding can offer real rewards, but they don’t come easy. here are many examples of companies attempting to raise $250,000 for a project and ending up with several million dollars, but in fact they represent a very small percentage of the campaigns launched. Two-thirds of successful campaigns raise under $5,000, and the majority of campaigns are unsuccessful, so it should not be viewed as a get-rich-quick scheme. As with all things, however, you can increase your chances of success by doing your homework. The vast majority of projects posted don’t have a hope of succeeding because their proposition is not well thought out, the product is weak, and the project overall is poorly presented. Reading this book will help you understand what you have to do to give your project a better than average chance of raising the money you need to develop your product, or take your company to the next level