UpGuard Blog

Just How Risky is Crowdfunding?

There are really only a few ways to get funding: an individual such as a venture capitalist or billionaire, a partnership or strategic investment by a corporation or state agency and getting a large number of people to give you a very small amount of money. Crowdfunding websites claim to offer a platform for the latter, giving inventors, artists and small businesses a method by which to propel themselves on the merits (or popularity) of their ideas, without needing inside connections or extensive business acumen as the other methods usually require. But because all of the transactions involved in crowdfunding take place on the internet, cybersecurity should be a number one concern for both users and operators of these websites. We used our external risk grader to analyze 7 crowdfunding industry leaders and see how they compare to each other and other industries.

Filed under: security, CSTAR, cybersecurity, crowdfunding