|English: Diagram of the typical financing cycle for a startup company. (Photo credit: Wikipedia)|
If this all sounds like it could usher in a new era of investment, that indicates only that you are still sane. Yesterday it may have taken $20,000 or $250,000 to invest in a startup. Not it takes just $1,000 and a solid nest egg. What’s more, hedge funds, real estate investing, or lending could be the next financial systems upended by a startup like FundersClub.It used to be called the friends and family round. It still is.
But the idea that you can go out there to raise first few thousand dollars is inherently liberating. You raise money out there from the get go. Small sums from a bunch of people.
There's room for many crowdfunding startups. FundersClub seems to yet another promising entry into the space.
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