Crowdfunding has become very popular over the past few years. One of the most difficult parts of starting up a business is securing enough finance to get it up and running.
If you’re unable to get a bank loan and have no connection to any investors, it can be extremely difficult to take your awesome idea and make it come to life. Crowdfunding has become an increasingly popular solution to this problem, by allowing start-ups to pitch their idea to a large number of prospective investors at the same time.
The Benefits of Crowdfunding
1. Efficiency – Crowdfunding is useful at the beginning phase of a business, where a pre-existing, online platform gives you the tools to get started, at low (or no) cost. With crowdfunding you are able to share your business story and produce a short motivational video that can entice investors to fund your idea.
2. Building Social Proof – Once investors have funded your idea this provides you with social proof to potential customers that your business/product is worth trying out.
3. Global Investment – By pitching your idea through online crowdfunding you are actively reaching out to investors from across the globe, helping to build greater geographical reach.
4. Media and Marketing Attention – crowdfunding creates exposure to the media who can direct more attention to your business idea and this further creates awareness, helping your idea reach more viewers.
Crowdsourcing is a brilliant way for young entrepreneurs to get their business ideas started. Here are a few crowdfunding companies you can approach if you’re looking to start-up a business; Indiego, Kickstarter, Crowdfunder, CircleUp, MicroVentures, RocketHub, EquityNet and Fundable.
Below is a list of successful, young entrepreneurs who have started their businesses using this beneficial crowdfunding process.