Crowdfunding has gained a lot of attention recently by entrepreneurs around the world. The old school way of getting money to start your business has changed and now entrepreneurs are turning to the web to find small investments from a large number of people. Websites like Kickstarter give entrepreneurs the chance to pitch their idea and ask for a minimum investment. In return, those who pledge (or fund) receive gratification in the form of “High Fives”, t-shirts, and sometimes the product that is being pitched. If the entrepreneur earns enough money in pledges to reach their goal, they will be funded by those who pledged to the idea! This is considered the Crowdfunding Reward Model. Check out the infographic below by BALLE to learn about the different ways that crowdfunding works.
Contact Moker CPA to learn more about funding your small business!