Crowdfunding SWOT Analysis
Strengths
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Entrepreneurs maintain control over their company’s decisions
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Capital is very accessible
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Opportunity to test idea marketability
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Benefits for communities both locally and internationally
Weaknesses
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Administrative and accounting challenges
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Ideas and business models presented public can easily be stolen
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Weaker investor protection and potential for fraud
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Internet-based, so investors might lack detailed advice
Opportunities
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Utilize the power of social networks for promotion, and connect with crowdsourcing
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Positive effects of crowdfunding on the economy
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Niche investment opportunity / way to raise capital
Threats
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Current legal restrictions in some jurisdictions are not suitable for equity crowdfunding
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Risky nature of small businesses