What are the disadvantages of crowdfunding? Why do many people say crowdfunding doesn't cost money?

If a project requires independent entrepreneurs to obtain start-up funds through crowdfunding, then it is probably certain that this is not the best entrepreneurial project.

Why? Because if this is really a good adventure,

Project, entrepreneurs are willing to spend energy to carry out, then venture capitalists and angel investors have long come to grab this investment opportunity, where is the need for crowdfunding!

So in general, crowdfunding is only for independent entrepreneurs.

Helpless move. In addition to the above, entrepreneurs should also consider the following points:

First, the systems and laws related to crowdfunding are not perfect.

Generally speaking, venture capitalists and angel investors want to see real capital statements before investing. In the eyes of some traditional investors, the money raised by crowdfunding may involve legal risks, and these people may not be willing to invest in innovation.

Entrepreneurial projects with crowdfunding background. In addition, the business opportunity world also learned that crowdfunding has not yet proved to be a very effective entrepreneurial model. The relevant system may take time to improve.

Second, the public does not really understand the field of entrepreneurs.

Many people who have had successful entrepreneurial experience agree that startups take smart people's money if they want to take it, and those who participate in crowdfunding are not "smart" people. It is found that the public may not know much about the industry field of entrepreneurs, and the reason why they spend some money to support entrepreneurs is just to gamble and see if they can share the benefits afterwards.

Third, the failure of crowdfunding will cause future disadvantages.

If entrepreneurs want to win as much start-up capital as possible through crowdfunding, they must desperately raise the visibility of crowdfunding projects and strive for more people to give generously after seeing them. Finally, the entrepreneur raised the amount he wanted. It doesn't matter, but

If it fails, it is tantamount to setting obstacles for the future. Because entrepreneurs have to convince venture capitalists and angel investors to invest again, they can't hide the fact that crowdfunding failed, but also give a satisfactory reason for the failure.

Because of the explanation.