The Top 5 Benefits Of Crowdfunding For Your Small Business

Jibo not only raised $ 3.7 million during his crowdfunding campaign, but also raised $ 16 million in RRE Ventures Series A funds. Until recently, the most traditional ways to raise money included applying for a bank loan or introducing angel and venture capitalist investors for an investment. While these funding sources are still living and working well, they are more difficult to use than the investors you can reach through a crowdfunding campaign. Banks are difficult because they want to ensure that the money they lend to them is repaid to them with interest. That’s why banks really don’t risk a new business idea that has no sales and profit history.

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Once you have removed your parents, siblings and best friends from your main list, almost everyone who supports your crowdfunding campaign has a real interest in your product and wants it to succeed. Not that your friends and family don’t matter, but your prejudice doesn’t reflect the real world. Your crowdfunding campaign identifies people outside your core group who want to crowdfunding buy your product and become loyal customers over time. This is the most important aspect of any business: buyers can find and create something they want to buy. As with almost everything in life, there are always people and things that attract all the attention. If you are Donald Trump or Oprah, you will of course get a lot of media attention and a lot of free advertising.

In some rare cases, they can also raise money from banks, angel investors and venture capitalists. Crowdfunding is based on friends and family who take advantage of social media opportunities to expand their audience and hopefully increase their sponsors. This free marketing helps your campaign to get fast traction, social testing and validation.

There is always a movie, song or image that gets a lot of free publicity because it is so good, while everyone else struggles to be noticed. There will be some projects that are mentioned more than 100,000 times on Twitter and that will get 5,000 likes on Facebook, and maybe even under the national media. When you decide to start a crowdfunding campaign, you will even receive numerous requests to notice your project, all for a fee of course. Crowdfunding is the process of raising money for your business through multiple contributors through a platform like Kickstarter or GoFundMe. Each platform has different requirements, but in most cases it will create a project for your business, request a specific amount and rely on individual donations / contributions to achieve that goal. You can also offer those taxpayers rewards at specific donation levels, such as giving a free product when they contribute $ 25 or more as an incentive.