For new or would-be entrepreneurs, the central priority is often raising cash. Even when the start-up costs associated with the invention or development of the business idea are low, there is a need for outside capital to market the business to the public. Where can a new business find this funding? In recent years, there has been a push to allow companies to obtain this funding more directly from the public, taking down some of the usual barriers to the public stock markets for early-stage businesses. This concept has coined “crowdfunding” – a process by which the general public (or crowd) funds a new business idea, primarily via an online portal.
What about the stock market?