Crowdfunding has shifted the risk dynamics for tech startups. Traditionally, the risk was primarily shouldered by the entrepreneurs and their initial investors. However, crowdfunding distributes the financial risk among a larger pool of backers, each contributing a relatively small amount. While this model greatly benefits startups by providing access to capital with less upfront risk, it also disperses accountability and can lead to challenges in managing backer expectations, especially if the project encounters delays or fails to deliver as promised.
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