> From an investor’s perspective, crowdfunding operates most similarly to angel investment. But most crowdfunding investors won’t be able to act like successful

> From an investor’s perspective, crowdfunding operates most similarly to angel investment. But most crowdfunding investors won’t be able to act like successful angel investors. “Successful angel investors invest in industries they know well, do a lot of due diligence, spend time mentoring the companies they invest in, and diversify their investments,” said Dorff. A single non-accredited investor may not invest as well as an experienced angel investor. But the idea is to invest with "the crowd". The funding sites will help with some of the due diligence, and people will gravitate to the most promising startups. Instead of providing advice individually, the crowdfunders will provide group feedback, marketing, etc. And they'll be able to diversify just like angels, since they'll invest smaller amounts in each startup.