Crowdfunding is an incredible tool for entrepreneurs seeking capital at any stage of their business. Startup businesses can validate their idea through a rewards crowdfund, giving them great traction to share with potential investors through a follow-on equity crowdfund.

A successful rewards crowdfunding raise (typically offering pre-orders of a product), is becoming a common precursor to raising equity investments from prominent angel investors seeking an equity stake in the company.

Angel Investors and Equity Crowdfunding

Before crowdfunding, angel investments were often found within an entrepreneur’s own network. Family, friends, and close business associates were all pivotal in an entrepreneur’s search for capital, due to a ban on the p...