Crowdfunding is the best way for new ventures to raise the funds needed to launch their dream businesses without the hassle of chasing down VC funding or angel investors. While crowdfunding is not new, it’s still not on every entrepreneur’s radar… yet.
So I get why I would want to try it but, what IS crowdfunding?
Crowdfunding comes in a few forms. Donation-based crowdfunding is the kind most people are familiar with. This charitable form of crowdfunding would be any campaign that asks donors to support a non-profit cause. GoFundMe campaigns fall into this category.
Another form is equity-based crowdfunding. This form allows backers to invest in and gain a stake in the business should it become successful.
The last form is rewards-based crowdfunding. With rewards-based crowdfunding, backers pledge for a specific reward—usually an item that the campaign is launching. Rewards-based crowdfunding is great for new businesses because it allows entrepreneurs to assess demand prior to starting production AND retain control of their company.
Focus on: Rewards-Based Crowdfunding.
Rewards-based crowdfunding is perfect for your startup, new product launch, event, or wild idea. Unlike traditional modes of funding, this form of crowdfunding allows you to raise funds with no strings attached. With over $34 billion raised through crowdfunding to date and an expected launch of 10,000+ campaigns in 2020, now is the perfect time to start planning your launch.
Who is the perfect candidate for rewards-based crowdfunding?
You will want to try launching a crowdfunding campaign if you…
- Are an entrepreneur with a new idea ?
- Want to maintain control over your company ?
- Want to gauge consumer interest before starting production ?
- Are tired of chasing down finicky investors ?
- Are ready to make your dreams a reality ?
How do I start?
Like all good things, crowdfunding can be a lot of work. Get your project started by doing as much research as possible. Look into which platform resonates best with your idea. Consider the value of taking a course on how to successfully fund your project. A well-run campaign can earn you enough funding to launch your business and maximize your company’s growth.
