Book Review: The Crowdfunding Bible

Crowdfunding is a popular means of starting up a business or funding a project. In 2011, $1.5 B was raised through crowdfunding and $2.8 B was projected to be raised in 2012. Equity-based crowdfunding, where a portion of the company's future profits are up for grabs, is becoming more prolific. The question that remains to be answered is how much funding can be raised without registered brokerage firms before the SEC steps in and regulates this type of financing activity.

This free ebook comes from Scott Steinberg, who is the author of "Crowdfunding Businesses and Startups: The Ultimate Guide", a Huffington Post article which is a harmless plug for the book. There's also an accompanying video.

Crowdfunding and crowdsourcing are not new models; but I have taken an added interest in it because there is quite a lack of business and marketing support for those who do get their projects or startups funded this way. I like how this book is structured and it has a whole section dedicated to questions that entrepreneurs need to be asking of not just their own projects but also the ones that were successfully funded. Even if you get funded it doesn't mean that your project will succeed with its deliverables.

It was also interesting to see how quickly funding can be eaten away by unforseen risks. The example posed in the book is of Warballoon Studios that raised $37k to make iOS and Android game Star Command.

What's good about the book is that it offers solid pre- and post-funding project planning ideas and tips for each stage of crowdfunding, from creating an effective video pitch to building effective rewards. The best part was the Q&A section of the entrepreneurs who got funded.

Read more?
VentureBeat's Kickstarter failures infographic (41% of projects fail, even when funded)

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