How Will Crowdfunding Help Your Startup?
There are various situations in which we hear people that thank someone for the
achievements that they managed to get. That is really common. What is not
common is seeing someone that thanks the crowd for all the success that was
As you are reading this article, there is a pretty high possibility that you want to
start a brand new business or you have a startup and you want to take it to the next
level. Whenever this is the situation, funding steps in as a necessity. You end up
thinking about loaning from your friends, from banks and your personal savings.
These are the most popular methods used these days to fund startups.
Entrepreneurs can even pitch their business plans to angel investors or venture
capital rms. !owever, this does not always work.
Technology evolved and we are now faced with new opportunities that appeared.
"ne of them is crowdfunding. This alternative method can help the startup to raise
funds from people with the use of the internet.
#rowdfunding basically means that you prepare campaigns and then upload them
on crowdfunding websites. Then, you use all the methods that you can in order to
make them viral, ranging from blogging to submitting infographics. Those that nd
information about the pro$ect and that care about what you o%er will contribute.
"bviously, crowdfunding will help your company by helping you reach your funding
goals. The only real di%erence between this and other funding methods is the fact
that you receive cash from a much larger number of people. You have options and
you can choose out of di%erent crowdfunding methods&
• Reward Based ' (ackers will receive rewards for the contribution. )uch a
reward can vary from a special thank you note to an early bird version of the
product. *ro$ect owner gratitude is basically highlighted through this. You
cannot put a price tag on this.
• Equity Based ' +n this case the backers are going to receive shares or e,uity
in the company as a return for what they donate.
Is Crowdfunding For Your Startup?
This is a ,uestion that only you can answer but it is denitely one opportunity that
you have to seriously consider. +t is denitely unconventional and entrepreneur
nancial woes are currently lowering. You do not have to go to investors or to pitch
many individuals until some will agree with your proposal. The only real thing that
you have to do is to present the startup in a proper way online.
The truth is that crowdfunding guarantees that the entrepreneur is going to be able
to pitch an idea to an audience that is really broad. That is something that most of
the aspiring business owners will love. -nfortunately, there are various situations in
which really great ideas do not end up being funded because regular investors do
not actually trust ideas. #rowdfunding helps take care of all that. )ome of the really
successful companies were started thanks to donations that were given by people
that trusted ideas. Your startup can be next.
If you are a start up and need some ideas continue reading.