What kind of crowdfunding model is right for you? It depends on the life cycle of your business, according to Sally Outlaw, founder of crowdfunding consulting company Peerbackers.com.
“If your idea is on a napkin, you’re probably not going to do equity-based crowdfunding -- because you’re going to be giving up shares of a company that you don’t even have or know how to value,” said Outlaw at Entrepreneur’s inaugural Entrepreneur 360 conference last fall in New York City.
While most businesses should look to rewards-based crowdfunding in order to first launch, Outlaw believes that it’s possible to raise money throughout your company’s entire life cycle while remaining within the crowdfunding ecosystem. “You can go from $0 to $50 million right now in a raise,” she says.
Check out more in the video above.