On crowdfunding platforms such as Kickstarter and Indiegogo, artists, entrepreneurs and people promoting causes have an opportunity to turn their ideas into reality. And you, Jane and John Chequebook, get to make it happen as long as you front them a little cash.
It's a simple concept: an individual or group posts an idea or cause and then markets it heavily to attract funding. On the other side, people search for cool new products or interesting initiatives to support.
But one thing crowdfunding is not: investing.
Handing your money over to a crowdfunded idea makes you more a customer than an investor. Customers expect products. Investors expect dividends, interest and returns.
Confused? Consider what crowdfunding is really all about. Read: Riskology-Fund a fledgling business, but don't call it investing.
(Image: Harley Schwadron)