GOOD: Crowd Funding brings funding to many;
BAD: 33% kick start successfully funded deals have not produced results;
UGLY: Will we have any Nigerian Princess on crow funding or just failing to deliver cool things they wanted to build (what I am calling “Fonzie Scheme”);
BOTTOMLINE: Expect many “Fonzie Scheme” as lot cool things offered by “Crowd Funding.” However, many entrepreneurs will not be able to deliver (or what I call throwing your money to cool idea with hope the entrepreneur can deliver = Fonzie Scheme).
Such optimism over this new way of raising money is giving crowd funding political power that will make it available on a much grander scale. Currently, crowd funding is very limited and is really just a twist on a traditional donation. Many crowd-funding efforts support art projects or humanitarian causes. Consumers may also help business projects by contributing money in exchange for T-shirts or by prepaying for products before they’re released. More than $290 million has been pledged for more than 26,000 funded projects on Kickstarter, the largest U.S.-based crowd-funding site.
Happy Networking & Investing: