Delaware Business Insurance Updates From CNC Insurance - 5-2-13

What is "Crowd Funding" and what does it mean for small businesses? Crowd funding isn't a new concept by any means but with the development of social media and networking, it has become a very popular way to raise investment funding. Most crowd funding centers around a concept, product, or idea that people feel so strongly about they donate funds or capital. For small businesses, it allows them to kick start their company much faster. Allowing businesses to keep there start up costs and overhead down dramatically. However, there are risks. Growth can happen too quickly, before all of the business infrastructures are in place. In addition there is no regulation on this fund raising concept. Some would say without those regulatory measure in place, the ability to commit fraud is greater. It remains to be seen if the good out weighs the bad when it comes to crowd funding. I guess it will depend on which side of the fence you're on. Until next time, be careful out there and know your risks.

G. Kevin Nemith
President, CNC Insurance
Proudly serving Delaware, Maryland, Virginia, Pennsylvania, and New Jersey.
www.cncinsurance.com
www.bizinsurancetv.org

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