In our previous article Insights into crowdfunding the concept of crowdfunding was explained while the following article focuses on investment. Crowdinvesting is not a miracle. However, there are a few myths due to misinformation about some basic principles and due to still changing legal provisions of this new financial instrument. Some of these myths are related to the expectations about the parties involved. The following facts are supposed to dismantle the myths of crowdinvesting.
Crowdfunding became known around 2005/06 in the creative industries. To cope with illegal downloads in the music industries, money was raised before publishing. However, the concept of crowdfunding is much older. In 1885 the Statute of Liberty would not have been completed without a newspaper-led campaign (by Joseph Pulitzer of the New York World) that attracted 160,000 donors.
This is the first article in a row of articles about entrepreneurship and financing in life science. They are supposed to spot issues that may come up with starting up a business and structuring the financing and can be used as a hands-on guide through the challenges that may emerge when switching from science to business.