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Crowdfunding: Pros & Cons

Posted by in Funding Products, Small Businesses

In just a matter of years, crowdfunding has taken the business world by storm. A variety of companies and initiatives got their start through crowdfunding, from virtual-reality headset Oculus Rift to The Veronica Mars Movie Project.

Crowdfunding business concept

But, as with most things, crowdfunding has its pros and cons. Not every idea gains momentum, and many projects go unnoticed. Keep reading to find out whether or not this method of fundraising is right for your business:


  • Gain investment from a large number of people who support your growing business
  • Develop a community of like-minded individuals
  • Contributing is hassle-free and without a middleman


  • Inability to gain traction
  • Little-to-no mentorship from investors
  • Lack of support from crowdfunding platforms

As you can see, crowdfunding isn’t for everyone or every cause. If your business idea isn’t as “sexy” as the Oculus Rift or The Veronica Mars Movie Project, crowdfunding may not be the best option for you. Luckily, there are other, more sensible options available.

With RMP Capital, you can unlock the potential of your receivables and turn them into cash today allowing you to pay vendors on time, take advantage of supplier discounts, or reallocate proceeds to fund new lines of business. Call 631.738.0047 or click here to learn more!

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