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posted May 29, 2013, 4:35 PM by   [ updated Jun 5, 2013, 9:08 AM ]
Crowdfunding is both a source of capital and the development of a community of early supporters. It provides much-needed cash for innovators, but more importantly, the chance to get feedback on your idea. For those that want a more technical description of how crowdfunding works and its various flavors, check the Wikipedia entry for Crowdfunding here>

Crowdfunding is a huge wave changing the entire landscape for inventors, innovators and entrepreneurs. It moves the balance of power toward the innovator and away from the money guys. Good ideas will get funded more often, from a more diverse and supportive group of individuals. 

Besides money, innovators need other resources: contacts, expertise, talent, and access. By broadening and diversifying their network of supporters via crowdfunding, start-ups will solidify the strength of their early backers.

But the most important benefit of crowdfunding is market feedback. Early stage businesses really don’t know if their ideas will sell or not until they put them to an actual market test. If you can’t raise your crowdfunding nut, it might be a sign that you need to move onto your next idea. Failing early is actually a huge benefit to everyone. And if the campaign does work, you have a community of invested consumers to help you refine and improve your idea.