5 reasons why you should crowdfund your idea

crowdfunding Jan 08, 2020

'Crowdfunding'

  • is an old idea given new life with the rise of the internet
  • does not replace any existing funding avenue currently open to you
  • is a choice and can compliment your existing fundraising strategy
  • has worked extremely well for businesses, start-ups and the non profit sector
  • has now eclipsed venture capital
  • close to being a $100 billion industry globally


Reason 1

There is no limit to the amount you can raise. If your idea is inspiring any number of people can back you with any amount.

Each campaign has an overall target that must be achieved. Motivated supporters can pledge at different levels and once the target has been met or exceeded the campaign is deemed successful.


Reason 2

You get 6 ways to raise funds


1. Donation based crowdfunding does not require you to pay back money pledged to your idea.

2. Rewards based crowdfunding allows to to offer a product or service in return for pledges.

3. Equity based crowdfunding allows interested investors to take a stake in your business for a return on their investment.

4. Debt based crowdfunding (Peer to Peer lending) lets you accept loans from investors which you have to pay back with interest.

5. Initial Exchange Offering (IEO) lets you raise funds using cryptocurrencies such as Bitcoin on the Blockchain.

6. Subscription crowdfunding allows you to raise funds on a monthly basis in return for access to regular content or services.


Reason 3


Crowds want to support and associate with successful projects.

Your supporters will want to get to know you and the details of your project.

You must have an existing network of supporters to run a successful campaign i.e. you need a crowd in order to go crowdfunding.

Your crowd can often support you quicker vs traditional forms of funding like going through your local bank.

You will also get feedback about your idea and also be able to engage your supporters about your product or service.


Reason 4


You will be able to share your content and expertise to a new audience.

Social Media tools are now easy and cheap to use therefore controlling and spreading your message has become more effective and powerful.

You will be able to build a community of people who will act as evangelists.

In addition you could receive more recognition as a thought leader in your field.


Reason 5


Crowdfunding will allow you to save both money and time.

You will:

  • be able to get your idea out to your supporters or investors more quickly.
  • risk less by getting quick market feedback about the suitability of your idea.
  • get more exposure through the campaign process.
  • potentially end up accessing more money vs going via the traditional route.

Learn all you can before jumping into Crowdfunding!

So why not try crowdfunding today by checking out these resources?

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