Founders Should Be Wary of Crowdfunding Sites Like Kickstarter, Because

question 42

True/False

Founders should be wary of crowdfunding sites like Kickstarter, because these efforts require founders to give up large ownership stakes to a large number of contributors before they can raise funds to bring products to market.

---

Definitions:

Maturity Date

The specified date on which the final payment of a loan or financial instrument, such as a bond, is due and payable.

Notes Payable

Written promises to pay specified sums of money at future dates, categorized as liabilities.

Annual Interest

The amount of interest due over the course of a year on a loan or financial investment.

Merchandise

Goods bought and sold in business operations, often referred to as stock or inventory.