Sharing Daily Discoveries About Personal Finance And Business Topics

Treating Crowdfunding As A Risky Investment or A Store Purchase

campaign fail

I have been looking for a portable camera recently that would have decent video stabilization built into it which led me to read about this new camera called the Revl Arc. It did sound like it had all the types of functions I was looking for. While in a regular circumstance I probably would have bought it in this case it isn’t actually out yet of course. Instead, you would be paying money to essentially invest in the company where the item is your reward for doing so.

revl arc

This made me a little weary as I have heard so many horror stories with crowd funding sites where companies generate millions of dollars only for the project to close down where everyone who put money in is out of luck. I would personally attribute that largely due to how many people who go to these sites think it is like shopping at Amazon or something like that. Essentially, it’s like a retail store where you putting in money would be like placing a pre-order. It just doesn’t work that way of course.

It can be a wonderful thing for the entrepreneurs of course who are looking to raise capital. But it’s just the reality of it where when there is money involved you can bet there will be many people who will have less than honest intentions. So to me anyways you should always treat crowd funding projects as if you are an investor as opposed to a consumer.

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