Crowdfunding for entrepreneurs

If you need capital to get your business started, you might turn to crowdfunding to raise those funds. Reaching out to venture capitalists and angel investors is stressful; you’ll need a pitch deck, there’s no guarantee you’ll get the funding you want, and even if you do, you may have to give up a portion of your ownership or control of the company in order to get it.

Speed and accessibility: You don’t usually need any special qualifications to start a crowdfunding campaign, nor is it especially hard to create one from scratch. Within an hour, you can get the basics of your page outlined, then immediately make that page visible to the crowdfunding platform’s audience. You don’t need to give presentations or hunt down specific venture capitalists, nor do you necessarily need a business plan to get started (though it’s still a good idea).

Marketability: Once your page is established, you can greatly increase the number of people you reach (and how your product is viewed) through any number of marketing strategies. You can master search engine optimization (SEO) to make your page rank higher for relevant online searches, create videos that show off how your products work, or even rely on paid advertising to spread word about your brand. There’s practically unlimited flexibility here.

Full control: Unlike with conventional investments, you won’t have to forfeit control of your company when raising funds. You get to decide how to structure the campaign, including how much to ask for, and then decide how you want to run your company if/when you get it.

Customer attraction: Marketing your crowdfunding campaign is a way to build early momentum and interest in your brand. For example, by the time Pebble Time got to market, it already had tens of thousands of loyal fans. Think of it as an in-depth market test to see if your idea is viable.

Competition: Assuming your campaign is accepted, you’ll face some stiff competition. Crowdfunding is incredibly popular because of its inherent advantages, and because it’s so accessible, there are countless projects going on in any major platform at any given time. Finding a place for yourself requires a detailed plan of attack, and a clever way to differentiate yourself from your closest competitors.

startupnation