What I found surprising in this week's reading was how "crowd funding" is a factor in weakening the economy. At the rate of how many start-ups are being created and how they typically use crowd funding as a source of funding the start of their business ventures, it's alarming to know that all of that effort and money raised is actually hurting our economy.
What was confusing to me was how an enterprise facing company in a niche industry, for example, would create excitement and/or get highly interested investors for an IPO. It's confusing to be because I simply don't understand how such information gets out/is released or how a company goes about doing that specifically -- it can't just be solely reliant on public relations.
The following are two questions I would ask the author:
- Please elaborate on how crowd funding is dangerous to the economy and visa versa.
- How do truly know what source of capital is best to start your business?
I'm pretty adamant on disagreeing with the fact that crowd funding is a result of a weak economy. A smarter hypothesis as to why crowd funding exists and is so popular is because of the Internet and its social media platforms -- not because the economy is poor.
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