Crowdfunding is a word you’ve heard a lot since the passage of the JOBS Act in 2012. But what is crowdfunding, and, more importantly, how you can use it to invest profitably?

What Is Crowdfunding? -

Crowdfunding is the name given to a new type of investing in which companies raise money by soliciting funds from a large number of individuals, often expecting only small amounts from each. While there are many types of crowdfunding (e.g., equity, debt, donation and reward), we will focus here on equity crowdfunding.

Originally published in CSQ C-suite Quarterly in the winter 2013/14 issue.