What is crowdfunding and how it can serve your business

Crowdfunding is one of the trends when it comes to starting or giving a definitive boost to a business. We tell you everything about this financing method …

Young entrepreneurs, small publishers and project leaders are turning to this massive financing figure to start their plans, based on their public exposure and the collaboration of potential consumers.

It is one more form of hyper-personalization of consumption on the web, through a pre-purchase strategy that begins to yield very good results.

How does crowdfunding work?

The process couldn’t be easier:

Through the various project exhibition and fundraising platforms (such as Kickstarter or others), the public is shown the scope of the project, its steps to follow to be established and the estimates of capital necessary to start the venture .

Then, potential investors decide which project to bet on and when to risk, for which the platform operates as a fundraising or investment accumulation service.

If the initiative is successful, the capital raised is channeled and the necessary push is given for its realization. Thus, a miniscule contribution from many becomes a massive and decisive accolade for a project that would otherwise take much longer to develop.

What should we take into account when trying?

The strategy to be successful through Crowdfunding is simple and we can summarize it in the following aspects:

Present the project efficiently

Financial and procedural transparency is key to enthusing investors, as well as having already thought about the specific audience you are targeting.

The virtue of this method is that it is possible to achieve an investment by offering unconventional products and services or even from a hyper specialized public, which does not for that reason be less enthusiastic when it comes to betting on entrepreneurship.

It is also possible that many startups face their challenges through a request of this type, in exchange for being able to keep running in a threatening or difficult scenario.

A good online campaign is essential

It is not enough to bet on luck. The project and its Crowfunding dynamics should be promoted as much as possible, since you never know which users would be interested but they do not frequent the typical massive investment platforms.

This is particularly useful when reaching alternative audiences.

100% is not always collected

It is necessary to know how to value the faith deposited by the co-financiers in the project, even if the totality of the preset figure is not reached.

Delivering results and publicizing what has been achieved to date could give the initiative the final push to get there.

Don’t forget where you come from

Even if the enterprise or startup has already successfully reaped the massive investment of its pre-buyers, it is advisable not to put them aside in the future of the company, either through promotions or public recognition of some kind that reward the effort of who were enthusiastic about the project before it was born.

Taking advantage of these new investment dynamics, we will be able to take that missing step and achieve our passions or sustain our ongoing projects.

And what better way to start a project than having the trust of hundreds or thousands of small investors?…