The internet has opened all kinds of new opportunities for small businesses. One of these major changes is how business owners can raise financing. In the past, business owners were limited to getting loans from the bank or possibly raising money from one or two large investors, like venture capital funds or angel investors.
Now, small business owners can raise money from a huge pool of potential investors through the power of crowdfunding. Crowdfunding’s popularity has exploded over the past few years. In 2013, crowdfunding campaigns raised $5.1 billion and analysts expect the total in 2014 to be even higher.