No matter what industry it's in or what product it's selling, the absolute best way for a startup to obtain the capital it needs to grow is to generate revenue and reinvest profits.
Of course, it's easy to say that and very hard to do it.
That's why many entrepreneurs turn to friends and family for funding. These types of investors do not bet on the business so much as they bet on the person. And more often than not, these bets do not pan out, leaving angry family members and broken friendships at their wake.
To read the full, original article click on this link: Can Crowdfunding Solve the Startup Capital Gap? - Sramana Mitra - Harvard Business Review
