27 Oct 2015, 11:09 — 4 min read
Ask a entrepreneur or an enthusiastic founder of a new start-up what the biggest trouble he or she is struggling with and chances are that the response will be funding. You may hear sighing or see a wrinkling of the forehead - with the hand unconsciously rubbing the temples. There's plenty of money out there alright, but it never seems to be placed in front of you. Of course, that won't stop any good businessperson, but the whole process can be extremely draining mentally. The truth is, funding is absolutely essential if you want to shoot into the spotlight.
But the big question remains answered: how does one acquire that lucrative money, and with it, reassurance? Anyone who reads this article would know the traditional methods of nabbing investors, but they are less likely to know about the modern day development of crowdfunding. It all started with Kickstarter, which kicked many businesses and ideas on the verge of death into life.
Kickstarter's not the only choice you have at your disposal. A number of other crowdfunding sources exist and you could possibly give your business the shot it needs by investigating these sources.
Here are some of the crowdfunding websites you could use for gaining some funding:
Crowdfunder is an equity-based crowdfunding campaign that charges registered business owners a fee of $299 a month for its services. Over 12,000 investors are associated with the site and the average crowdfunding deal size is at a phenomenal $1.8 million.
Microventures was started in 2009 and has raised over $80 million in funds since its inception.
The selection process is quite thorough and if a business does not meet the website's standard, they simply aren't considered. The team at Microventures has both accredited and non-accredited investors on its site and focuses on emerging digital businesses.
CircleUp acquaints small business owners with a whole world of investors and business experts, expecting them to prove to high-profile investors that their business is the real deal. There are no initial fees - if you succeed in your crowdfunding campaign, only then are you charged.
However, the selection process does have its restrictions. Only companies with a high revenue are considered for investment, although exceptions are made in the case of particularly promising businesses.
Before we conclude, here are some general tips when establishing a crowdfunding campaign:
The Type Of Crowdfunding
Crowdfunding works in different ways. You could choose rewards-based or donation based, and it won't do well for your business if you choose the kind that won't work with your business goals. Your business goals in turn will affect what platform you choose for crowdfunding. Depending on goals and the nature of the company, you might prefer one platform over another. Do your research.
The driving force behind your crowdfunding is, quite obviously, your marketing. You need to announce to the world that you have arrived and get everyone onto your social media declarations. Those like and shares must convert into your eventual goals. Some crowdfunding platforms will offer marketing help in the early stages, so there's something else to consider.
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