Crowdfunding Consultants Don’t Add Much

As more crowdfunding campaigns are failing to raise their targeted amounts (66% this year vs. 50% last year), more startups are turning to PR firms, Twitter masters and other types of “experts” who promise to raise the campaign’s profile to solicit more funding.

However, Professor Ethan Mollick, of the Wharton School at the University of Pennsylvania, has determined that 12% of crowdfunders on Kickstarter used “consultants” to help them raise funds but they did not make a difference in the money raised.

Some crowdfunders have found them useful, others were out of pocket by the end of the campaign.

About JeffKoeppel

I am a corporate/securities attorney in the Washington, DC area. Prior to joining the firm, I was a Senior Attorney Advisor in the Division of Corporation Finance at the U.S. Securities and Exchange Commission. I am a member of the Bars of the States of Maryland, New York and the District of Columbia. You can also follow this blog on LinkedIn at:
This entry was posted in accredited investor, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Crowd Funding Platforms, Film, fraud, Investments, Jobs, Legislative Intent, SEC, Small Business, technology, VC, Venture Capital and tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink.

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