Raising Funds for Your Startup via Crowfunding


For every 1 million startup ideas that are envisioned by budding entrepreneurs, only a handful get to see the light at the end of the tunnel. This is so because only a fistful of potential businessmen are successful in convincing venture capitalists, angel investors, and financial institutions about the viability of their startups and receiving funds. Your possibilities of receiving finance for your business that you’re yet to launch will surely go up if you exploit crowdfunding sources.  Following are some tips on you how you can brighten your chances of receiving funds via this route.

  1. Pick The Right Platform

Choosing the right platform that’ll connect you with the maximum number of individuals or institutions who’ll be willing to give second thought to your project is the first and the most important step. Two of the best crowdfunding sites are Kickstarter.com and Fundable.

  1. Decide on How You Wish to Repay Investors

There are three fundamental ways of liaising with individuals that keep on surfing on the different automated social networking sites. One thing you should keep in mind is that crowdfunding happens exclusively online enabling you to publicize your project across infinite sites and web-based platforms.

You can opt for debt-based funding where lenders advance you a sum against a specified rate of interest or you can opt for equity-based funding where lenders would be interested to have an ownership stake in your business. There is also a third option where you pledge to payback in kind (instead of cash) like offering a t-shirt, mentioning the name of the lender in your site.

  1. Make Lenders See their Benefits

If you want to expedite the process of pitching for funds from prospective investors, you’ll have to forget thinking about your benefits for a while. Rather you should focus on what you can offer to investors. Perhaps the best way to realize that is to put yourself in the shoes of the investors.

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