With the democratization of the internet comes micro transactions, micro loans, and crowdfunding.
What is crowdfunding?
Crowdfunding provides a way for small startups that can’t get traditional funding to get support from the masses essentially.
While I have friends who have successfully crowdfunded projects and delivered, the internet is full of tales of failed crowdfunding and non delivery of promises.
TechCrunch has an article entitled,
And this is 100% true in nearly all cases.
To mitigate the risks to yourself carefully judge the project.
Who is involved, how much is being raised and what the promises are.
Only give money that you can afford to lose with no strings attached and no care if the project is finished or not.
You can help with someone elses dream project, but protect your nest egg as you do so.
After all, without a valid contract between you and the originator of the crowdfunding project, you are left with little if any, recompense.