When it comes to business ventures, crowdfunding platforms – like Kickstarter, Indiegogo, and GoFundMe – are often met with harsh distrust. And, it isn’t hard to see why. In 2014, a group of teens started a crowdfunding campaign, intending to create a web series based on a concept that originated on the microblogging website, Tumblr. Unsurprisingly, the project fell through, leaving donors both saddened and furious.
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More recently, $430 000 was lost thanks to a defunct Kickstarter campaign, promising Raine One electric scooters. A lack of experience and resources undoubtedly spells disaster. And with so many horror stories, it isn’t any wonder that equity crowdfunding has garnered a bad reputation in the business world.