16 Things Investors Should Know About Crowdfunding

It’s possible to get a quick return.

Sometimes companies that ship a product and have proven demand, but need capital to buy in bulk or fulfill orders, use websites like Kickfurther to get a crowd-sourced loan. “I like to look for companies that start paying back within a month versus companies that have long lead times due to manufacturing delays and won’t start paying for a few months,” says Jose Vieitez, co-director of Boomtown Accelerator in Boulder, Colorado. “I like to get the compounded interest returns so that, if a company pays back a fifth of their loans, I can get an even higher return by reinvesting that fifth into another deal.”
Read the full article on U.S. News.