What are the setbacks that entrepreneurs will face when they turn to crowdfunding investing instead of the traditional lending avenues that have created barriers for borrowing money? This is the question that many entrepreneurs have and this article seeks to provide possible answers to this.
There are still many areas attached to the crowdfunding model that has to be ironed out for investors to believe that they are not getting themselves in a losing situation when it comes to collective investments. For one, some crowdfunding websites do not have any legal terms or formal contracts that bind project owners to fulfill the project according to how it was specified when they first delivered their online pitch. Secondly, investors are not guaranteed a return on investment if the project fails of if the project owners fails to fulfill what was outlined.