5. Crowdfunding platforms, such as Kickstarter or GoFundMe, allow startups to access many different investors who may be able to contribute only small amounts in return for relatively small rewards. In the case of the iBackPack, those providing funds through Kickstarter were largely unaware of the company's postfunding operations (or generating funds after the investment, using the investment to make more money instead of using the investment to improve on the product). A. How did the lack of oversight harm investors? B. How might this situation have been different if a single angel investor (high value) had been involved?
5. Crowdfunding platforms, such as Kickstarter or GoFundMe, allow startups to access many different investors who may be able to contribute only small amounts in return for relatively small rewards. In the case of the iBackPack, those providing funds through Kickstarter were largely unaware of the company's postfunding operations (or generating funds after the investment, using the investment to make more money instead of using the investment to improve on the product). A. How did the lack of oversight harm investors? B. How might this situation have been different if a single angel investor (high value) had been involved?
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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Transcribed Image Text:5. Crowdfunding platforms, such as Kickstarter or GoFundMe, allow startups to access many different
investors who may be able to contribute only small amounts in return for relatively small rewards. In the
case of the iBackPack, those providing funds through Kickstarter were largely unaware of the
company's postfunding operations (or generating funds after the investment, using the investment to
make more money instead of using the investment to improve on the product).
A. How did the lack of oversight harm investors?
B. How might this situation have been different if a single angel investor (high value) had been
involved?
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