We are a consumer electronics business that completed a successful crowdfunding campaign which jumpstarted our business. However after some months, our manufacturing expenses are very high and we have started to look for investment options. We have some offers from VC's, but we are not sure if they will be a good fit for a hardware startup. Is giving away equity to crowds of people a sane thing to do? Has anybody been in this situation or has experience in it?
Investing through equity crowdfunding can give the investor a greater degree of personal satisfaction than investing in a blue-chip or large-cap company. Equity crowdfunding may offer more avenues for such targeted investments than publicly traded companies. Investing through equity crowdfunding carries risks such as the greater risk of failure, fraud, doubtful returns, vulnerability to hacker attacks, and mediocre investments.
You can read more here: https://www.investopedia.com/articles/investing/102015/invest-through-equity-crowdfunding-risks-and-rewards.asp
Besides if you do have any questions give me a call: https://clarity.fm/joy-brotonath
Answered 3 years ago
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