For many young, first-time entrepreneurs, tapping parents for startup capital is the closest they’ll come to landing investors. But what do you do if the bank of mom and dad can’t or won’t subsidize your brilliant business idea? Consider crowdfunding.
Websites like Kickstarter, IndieGoGo, and PeerBackers follow a crowd sourcing business model, wherein members sign on as backers and supply the capital necessary to start a business or product. In return, these investors typically receive tangible rewards like special access to a screening, a T-shirt or a sample of the proposed product.
The good news? Age tends not to be an issue among crowdfunding investors. “Young people have proven they are able to raise money like anyone else,” says IndieGoGo’s CEO and co-founder Slava Rubin. “The key for anyone is to have a good pitch, be proactive and find an audience that cares.”
Check out this story for Entrepreneur.com for more tips on how to successfully crowdfund a business.