LOS ANGELES-With so many new crowdfunding campaigns cropping up, managers have a wide number of options for which online platform to use for marketing and fund-collecting purposes. With more than 800 platforms out there, those new to the game may be tempted to choose one that is popular and offers the “easiest” system for managers, but this could be a mistake if the platform doesn’t meet the fund’s needs in the end—and it can get expensive.

“Where there are a few crowdfunding success stories, 60% of campaigns raise little or no money on platforms,” Alon Goren, founder and CEO of InvestedIn—a Los Angeles-based white-label crowdfunding company that has helped entrepreneurs raise more than $32 million—tells GlobeSt.com. Add to this recent news stories about crowdfunding platforms that have reported insolvency due to the high costs, despite 15% fees—and “it’s apparent that the commission-based model is encountering problems and may not be serving entrepreneurs as well as hoped.”

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