What is the risk behind crowd funding?

[Genius]

I am about to build my campaign. The type of the campaign is crowd funding. Please guys help me to understand the risk behind  crowd funding.

[zandra]

I am about to build my campaign. The type of the campaign is crowd funding. Please guys help me to understand the risk behind  crowd funding.

A lot of risk behind the crowd funding because there no assurance if you'll get your desired profit because the project your going to make typically happen via internet.

[owmivmen]

Have you planned well before creating a campaign? because it makes the campaign at risk of failing and spending your money and time. before making kampenye i think you need a good marketing team.

[Bobcrypto]

I am about to build my campaign. The type of the campaign is crowd funding. Please guys help me to understand the risk behind  crowd funding.

If you want to establish your company through crowd funding, the following are some of the risk that you may encountered.
1.Risk of fraud e.g. funds may be used for different purpose than what was initially disclosed, the creator may also portray an idea he/she doesn’t own. The creator, who has been deemed malicious, may also use the campaign to go on a Phishing trip, where he/she gains access to a backer’s personal and financial records e.g. banking and credit card information and use it to defraud the sponsor. It is expected that the backer perform due diligence before giving their money, but a lot of times they don’t.

2.A lot of project creators and backer do not realize that crowds do not know everything. See, human interest, curiosity and excitement is always easily piqued by novelty. Ideas may be great and well received but they may be not easily commercialized. Unfortunately, according to well researched reports, 3 out of 4 startups fail. What this means is that 75% of all successfully funded ideas fail. This is very unfortunate.

3.For Crowdfunding, transactions are one time, and not continuous. Business owners and project creators must learn how to balance the short term influx of cash raised through Crowdfunding efforts with the daily cash flow expense requirements of their business.

4.A lot of the creators posting their projects online have good ideas and no business expertise. They have no idea how to set up a business or how to fulfill the legal requirements of owning a business and do not have experts to guide them on this. This is a recipe for disaster.

[ped123]

I am about to build my campaign. The type of the campaign is crowd funding. Please guys help me to understand the risk behind  crowd funding.

If you want to establish your company through crowd funding, the following are some of the risk that you may encountered.
1.Risk of fraud e.g. funds may be used for different purpose than what was initially disclosed, the creator may also portray an idea he/she doesn’t own. The creator, who has been deemed malicious, may also use the campaign to go on a Phishing trip, where he/she gains access to a backer’s personal and financial records e.g. banking and credit card information and use it to defraud the sponsor. It is expected that the backer perform due diligence before giving their money, but a lot of times they don’t.

2.A lot of project creators and backer do not realize that crowds do not know everything. See, human interest, curiosity and excitement is always easily piqued by novelty. Ideas may be great and well received but they may be not easily commercialized. Unfortunately, according to well researched reports, 3 out of 4 startups fail. What this means is that 75% of all successfully funded ideas fail. This is very unfortunate.

3.For Crowdfunding, transactions are one time, and not continuous. Business owners and project creators must learn how to balance the short term influx of cash raised through Crowdfunding efforts with the daily cash flow expense requirements of their business.

4.A lot of the creators posting their projects online have good ideas and no business expertise. They have no idea how to set up a business or how to fulfill the legal requirements of owning a business and do not have experts to guide them on this. This is a recipe for disaster.

Nice explanation about crowd funding.