Crowdsourcing and crowdfunding are changing the way startups raise funds to develop their projects or products. According to studies complied by Northeastern University and the Master Degree in Finance online department, crowdfunding platforms such as Indiegogo, Kickstarter and GoFundMe are helping startups get their ideas off the ground without the help of a business loan or angel investors. This means new startups can launch their products ahead of performing true valuation, allowing the whole startup landscape to enjoy a nice boost in valuation.
It doesn’t stop there either. Some of the most successful startups we have today were founded as Kickstarter or Indiegogo campaigns. They continue to operate independently and grow their businesses exponentially without funding from investors or banks. In exchange for the funds, those backing these startups get early access to the products and other rewards.
You can learn more about how crowdfunding is changing the way startups perform valuations from the Key to Valuation infographic by Northeastern University.