Three are the reasons why people should invest in an equity crowdfunding campaign according to Slava Rubin, founder of Indiegogo, the crowdfunding platform which earlier this year announced to be the first major crowdfunding site to use a new securities rule that took effect seven months ago in the U.S. allowing ordinary investors to risk up to a few thousand dollars a year backing private companies.
The first is to earn a return. The second is for the joy of the process. And the third is to create a social good, whether you’re investing in someone you’re already familiar with or contributing toward a broader cause.
However, even though the three motivators – financial, entertainment, and social – have overlaps it’s important to figure out which one will drive an investing strategy, VB’s first-time investor’s guide to equity crowdfunding clarifies.
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