How to get investors for your business through Crowdfunding

How to get investors for your business through Crowdfunding

How to get investors for your business through Crowdfunding is a must read. Getting investors for your business might probably the hardest thing you will ever do as a business man. It is a painstaking task which involves a lot of meetings with hundreds of people. You will need to go to offices, make calls and try to figure out which investor has the best offer.

There are silent investors, private investors, your family and investors who will want a deeper role in your business. You have to go through all their offers before deciding on which investor to work with.

There are over 10 different ways to get investors for your startup business but we will be looking at Investment through Crowdfunding.

What is Crowdfunding?

Crowdfunding is an approach that taps into the collective efforts of a large pool of individuals. It can also be defined as a method of raising capital through the collective effort of friends, family, customers, and individual investors. Primarily dominant on the social media for greater reach and exposure.

What makes Crowdfunding different from traditional business approach?

The traditional approach to raising capital for your business involved sharing your idea around to a limited pool or wealthy individuals or institutions. These funding sources included  banks, angel investors, and venture capital firms, really limiting your options to a few key players. Failure to convince these institutions is your time and money lost.

Crowdfunding deals with social media and crowdfunding platforms. It gives you, a single platform to build, showcase, and share your pitch resources. This approach is revolutionary and dramatically streamlines the traditional model. No need to spend months sifting through your personal network, vetting potential investors, and spending your own time and money to get in front of people. With crowdfunding, it’s much easier for you to get your opportunity in front of more interested parties and give them more ways to help grow your business, from investing thousands in exchange for equity to contributing $20 in exchange for a first-run product or other reward.

Why crowdfunding is the best

Also known as the benefits of crowdfunding, aims at making you see the advantages of crowdfunding and how it can be used to get investors.

Below are a few advantages of Crowdfunding;

• Reach – There are many Crowdfunding Platforms. By using a platform like Fundable, you have access to thousands of accredited investors who can see, interact with, and share your fundraising campaign.
• Presentation – By creating a crowdfunding campaign, you go through the invaluable process of looking at your business from the top level—its history, traction, offerings, addressable market, value proposition, and more—and boiling it down into a polished, easily digestible package.
• PR & Marketing – From launch to close, you can share and promote your campaign through social media, email newsletters, and other online marketing tactics. As you and other media outlets cover the progress of your fundraiser, you can double down by steering traffic to your website and other company resources.
• Validation of Concept – Presenting your concept or business to the masses affords an excellent opportunity to validate and refine your offering. As potential investors begin to express interest and ask questions, you’ll quickly see if there’s something missing that would make them more likely to buy in.
• Efficiency – One of the best things about online crowdfunding is its ability to centralize and streamline your fundraising efforts. By building a single, comprehensive profile to which you can funnel all your prospects and potential investors, you eliminate the need to pursue each of them individually. So instead of duplicating efforts by printing documents, compiling binders, and manually updating each one when there’s an update, you can present everything online in a much more accessible format, leaving you with more time to run your business instead of fundraising.

Different types of Crowdfunding

There are different types of Crowdfunding namely;

• Donation-Based Crowdfunding
• Rewards-Based Crowdfunding
• Equity-Based Crowdfunding

Donation-Based Crowdfunding

Any crowdfunding campaign in which there is no financial return to the investors or contributors is donation-based crowdfunding.  Common donation-based crowdfunding initiatives include fundraising for disaster relief, charities, nonprofits, and medical bills.

Rewards-Based Crowdfunding

As opposed to donation-based crowdfunding, this funding involves individuals contributing to your business in exchange for a “reward,” typically a form of the product or service your company offers.

Equity-Based Crowdfunding

Equity-Based Crowdfunding is considered the best. Unlike the donation-based and rewards-based methods, equity-based crowdfunding allows contributors to become part-owners of your company by trading capital for equity shares.

Best way to get investment for your business

If you are a small business looking for investors, then send inquiries to Ricardo Manero. The best way to get investment for your business is through Ricardo Manero. They are reliable and will always be present to assist in the building process. Let us share in your dream.

Source: Forbes