MGMT 160 Crowdfunding

3 best practices of D crowdfunding?

1.

What are some benefits of crowdfunding?

1. validating the overall business idea 2. refining product or service using customer feedback 3. testing how a product will perform before officially going to market 4. marketing via promoting product/direct sales channel 5. helps alleviate capital crunch many startups face

Why would a startup turn to crowdfunding?

Lack of credit and operating history, balance social and for-profit goals

3 types of crowdfunding and brief description of each (LED)

Lending - raises money w expectation that founders will repay supporters. Equity - venture raises money in exchange for ownership stake in the firm. Donation - founder receives money from a crowd without any tangible return for their contributions.

2 types of E crowdfunding?

investor-led entrepreneur-led

3 types of L crowdfunding and explanation of each?

pre-sale: pay upfront then deliver finished product at a later date traditional lending: loans are repaid with interest forgivable loan: repay contributions if and only if generating profit

What is the appropriate crowdfunding model for each of the 3 startup stages?

pre-startup: donation startup: lending growth: equity

2 types of D crowdfunding and explanation of each?

rewards-based: incentivize backers with nonmonetary rewards pure donation: no rewards for contributors

What is crowdfunding?

the outsourcing of an organizational function to a strategically defined network of actors in the form of an open call via dedicated websites.