Crowdfunding SWOT Analysis

Strengths

  • Entrepreneurs maintain control over their company’s decisions
  • Capital is very accessible
  • Opportunity to test idea marketability
  • Benefits for communities both locally and internationally

Weaknesses

  • Administrative and accounting challenges
  • Ideas and business models presented public can easily be stolen
  • Weaker investor protection and potential for fraud
  • Internet-based, so investors might lack detailed advice

Opportunities

  • Utilize the power of social networks for promotion, and connect with crowdsourcing
  • Positive effects of crowdfunding on the economy
  • Niche investment opportunity / way to raise capital

Threats

  • Current legal restrictions in some jurisdictions are not suitable for equity crowdfunding
  • Risky nature of small businesses