Small businesses are suffering. Banks have imposed stricter guidelines loans, and Angel Investors are less willing to fund risky ventures. Crowdfunding will allow small companies the ability to raise cash by pooling the resources of a network of Investors.
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Crowdfunding involves many investors contributing smaller sums. Each backer, therefore, has less exposure, and if the funding goal isn't reached - the investor keeps their money with nothing lost!
Forbes says:"It is clear from this new research that entrepreneurs, investors and the intermediaries who help them are excited about crowdfund investing and are ready to play."
Entrepreneur Magazine says:"The JOBS Act, signed by President Obama earlier this year, will dramatically change the nature of early-stage funding."
