There is one category of investors who will have an excellent vantage point from which to assess new ventures. I am talking about customers. Daniel Cane, co-founder of Blackboard, is doing a new company in healthcare IT that he has ”crowdfunded” from customers. Technically, it is not crowdfunding as in the financing was not completed on Kickstarter or a similar site. However, Daniel raised the funding from a bunch of doctors who were enthusiastic about his product and wanted to invest. This converted customers to investors, massively enhancing their stake in the game, and incentivizing them to promote the product to large numbers of other doctors who are likely prospects for the company.
By: Sramana Mitra