Crowdfunding is an effective way for entrepreneurs to launch their companies without much capital investment. Instead of buying loads of inventory up front, crowdfunding enables entrepreneurs to judge the demand for their product while helping them fund their first production run.
We didn’t have the money to fund our first production run when launching my startup, Yes Man, so we turned to Kickstarter. People supported us by pre-ordering one of our watches. The money from preorders funded our first production run.
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