Press Release Immediate Release New form of ecommerce offering fresh options to Start-ups and Small Business Small Businesses and start-ups now have a real and relevant source of funding that doesn’t involve taking out bank loans or surrendering equity in their idea or venture. Increasingly, small businesses right around Australia (and around the world) are finding their capital requirements through Crowd Funding. Crowd Funding, whilst largely unheard of in Australia, is the world’s fastest growing form of ecommerce, and represents a real and relevant resource for individuals and groups to raise funding quickly and easily from their networks. iPledg has made crowd funding simple by building an effective platform (www.ipledg.com) where project creators (businesses, start-ups, inventors, and the like) can post a project and then engage their networks through social media, emails, and other communication to come along and make financial pledges of support. Whilst projects run on crowd funding platforms are best suited to funding targets of between $3,000 and $30,000, much larger amounts have been raised in this manner. “People tend to support campaigns because they like and have faith in the project creator or team, they are passionate about the project or the results the project will deliver, or they desire the cool, great value rewards offered to those who pledge” said Bryan Vadas, marketing Director of iPledg. There currently exits a considerable gap at the bottom of the funding ladder. Businesses after large amounts of money have the ASX on which to raise capital. Organisations on the next rung down can consider trade finance, bank loans, or factoring, all of which come at a cost. Government grants are available, but the bar is usually set quite high. There has been nothing available to fund (at a reasonable cost and at low risk) what is just “a good idea” – that is until Crowd Funding. Inventors are using crowd funding to raise funds to cover the cost of prototyping, establishing proof of concept, or securing their IP, whilst start-ups tend to see great value in running a crowd funding campaign to fund marketing campaigns, the launch of their business, or to contract in the skills and knowledge to plan and implement their business concept. Established businesses are able to use crowd funding to come up with the money required for tools and resources to implement change, to grow the business, or for marketing initiatives.
Businesses have also been quite creative when it comes to larger projects that are best broken down into “bite sized” pieces that are smaller, more easily achieved funding campaigns and projects. Businesses find running one smaller campaign for “phase one” of a larger program is a good basis for running their subsequent campaigns and, as such, use success to build further success. But ultimately the applications for crowd funding in small business are only limited by the imagination of the project creator. One of the great benefits of successful crowd funding campaigns is that of the social proof generated. Recently a company wanted to create a stylish watch band to house Apple’s iPod Nano. Apple’s view was that no one would be interested in this concept, so the project creator put their idea on a crowd funding site to raise the money to make a prototype. They offered the watch bands as rewards, giving project supporters a product worth almost twice the value of amounts pledged. The result was twofold. They wanted to raise $15,000 in 30 days, but instead they amassed a staggering $942,000 in that timeframe. More importantly than the funds raised was the social proof provided by the 13,000 people who pledged money to the project. Apple saw just how many people wanted the product, and were soon back on the phone to the company, and now the product is on sale in every Apple store globally. iPledg has currently waived their $250 listing fee so costs nothing to list a project on iPledg. The only cost is a 5.5% success fee for monies successfully raised (meeting or exceeding that funding target within the funding timeframe), as well as 2.4% transaction fees (plus 30 cents per transaction) levied by PayPal. This means now is a better time than ever to explore crowd funding for your commercial idea or business. To register a project, or to find out more, visit www.ipledg.com ENDS For press information, interview requests with Mr Vadas, high res images or to register interest, please contact iPledg media team on 0414 635 003 or email email@example.com
Small Businesses and start-ups now have a real and relevant source of funding that doesn’t involve taking out bank loans or surrendering equity in their idea or venture.
Broad based crowd funding site, iPledg, supports those with creative,commercial, charitable, and community endeavours. In this article they explain how the iPledg crowd funding platform can be used to assist start-ups and small business to raise necessary funding without following the more traditional (and difficult) pathways that have become unyielding in recent economic times