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5 Steps to Practice Safe Crowdfunding

August 5, 2014

Money doesn’t grow on trees. Hard work is the key to success. You would be hard pressed to find someone who hadn’t heard these lines growing up. But some of these erstwhile truisms need altering ever since online crowdfunding has taken the world by storm. For a case in point, look at the man who managed to raise more than $50,000 on Indiegogo to make potato salad. Potato salad! He raised $49,990 more than his $10 goal.

This example is to illustrate that people on the Internet have money to spend. But unlike a simplistic campaign that goes viral, designing a legitimate campaign is hard work. If you are looking to raise capital to launch a product, then crowdfunding might be right for you; and with a little patience, and by following the steps below, it will have definitely been worth the effort. You’ll be practicing safe crowdfunding in no time!

Step 1: Identify your intellectual property

First things first: identify your intellectual property (IP). IP is not limited to the tech industry; any and every company has IP, including yours. Launching an idea into the world exposes you to more than just some wise guys leaving disparaging comments. It enables anyone to access your campaign, and with enough capital, that person can recreate your product if you haven’t taken the necessary steps to protect it. If they successfully bring it to market before you, then you can kiss your baby goodbye.  (more…)