Crowdfunding is Spreading
If you choose to fund a project through crowd source financing, you will be among the growing list of investors who have grown tired of Wall Street style based buying and selling. Collectively, the group may be wiser than a single or group of investment professionals.
Once you've decided to fund a project, it is probably a good idea to approach a crowdfunder organization and ask questions about the different causes they represent. Don't make a commitment until you find the right vehicle for your investment, but listen to what is available. Ask questions so you know as much as possible about any opportunity that might appeal to you.
Do It Yourself - If You Dare
Depending on your own circle of friends and associates, you might want to test out a crowdfund of your own. If you know someone who needs capital to get a start and you really believe in the person and the offering, there's nothing to say you can't do it yourself. You will need to keep in mind the legal aspects of the situation and understand how to structure the crowdfund before you actually handle any money.
Keep in mind that crowdfunding is a bit of an art and there are producers out there that have experience and connections. Even if you find yourself capable of raising capital in this manner, there are rules and regulations that must be followed, and the professionals will know what these are.
It is unlikely that crowd source funding will go away anytime in the near future. This type of funding is relatively new to South Africa, but it is beginning to turn up on many fronts. It may become the standard way of doing business within the next five years, so it is a good idea to get to know a little bit about it now.