Entrepreneurs, dreamers turning to crowdfunding in droves

Crowdfunding is quickly joining the ranks of banks and angel investors as a funding source, redefining how entrepreneurs get seed money, how small businesses finance expansion and how anyone with an idea or cause can turn a dream into a reality.

At its core, crowdfunding is an online pitch. You post a bit about your project and how much you need on a crowdfunding website and appeal to the Internet "crowd." Then, if they’re convinced, funders can click to pay a certain amount. In return for an investment, many campaigns offer public radio-type goodies, such as a mug; others offer an actual product hot off the manufacturing line or a feel-good reward such as a handwritten thank you note. And later this year, new federal rules will allow ventures to offer equity stakes in crowdfunding campaigns.

By Jennifer Napier-Pearce

Full Story: http://www.sltrib.com/sltrib/money/55947792-79/crowdfunding-campaign-campaigns-http.html.csp

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Louisville entrepreneurs look to online crowdfunding to back their startups

Using the website Kickstarter, Louisville residents have raised thousands of dollars to create a locally designed deck of playing cards, a new studio and dance theater and a smartphone app listing the menus and hours of the city’s independent restaurants.

Local entrepreneurs say these projects show the potential of “crowdfunding” — a new way to raise money for start-up businesses by pooling small contributions from backers over the Internet.

Currently, people who give money to crowdfunded campaigns do so on faith.

Chris Otts

Full Story: http://www.courier-journal.com/article/20130309/BUSINESS/303090029/Louisville-entrepreneurs-look-online-crowdfunding-back-their-startups?nclick_check=1