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. True False

Question

Social Studies

Jaycee Wallace

28 July, 20:04

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. True False

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Deven Franco · Answer 1

Answer: false

Explanation: In simple words, founder refers to that individual who initiates a company for the purpose of business by generating an idea of his or her own.

Usually, new business face the problem of lack of funds or sometimes they don't have enough to initiate the business. Hence the sites like kick starter works as a good alternative e for funding.

The majority of shares remains to the founders even in the case of crowdfunding.

Hence from the above we can conclude that the given statement is false.