What is Crowd Funding?

What is Crowd Funding?

When it comes to starting a company or getting a startup off the ground, it can be really hard to get the necessary funding without having to be held down by outside investors. Naturally, this results in the investors influencing the product or business which might or might not be always for the best.

Crowdfunding on the mther hand is much more practical and efficient than traditional fundraising and gives power to the people while the creators retain full control of their business or startup. Crowdfunding started making a name for itself back in 2012 when many small businesses started using it to gather sponsors and funding to start their company or startup without having to give up control. This also meant entrepreneurs didn’t have to come with an insanely high amount of money to start a business or support a startup on their own.

Why Pick Crowd Funding For Your Business/ Startup?

One of the biggest reasons why anyone should opt for Crowd Funding is simply because it’s much more efficient than traditional financing, although not always successful, so read on! Compared to selling shares finding accredited investors or taking a loan from a bank, setting up a crowd funding campaign on sites like Fundable or Crowdcube is far more effective – as long as you have something worth investing in that is. You need to set up a campaign that tells the story of your business and entice people into funding your startup or business.


With crowdfunding, you don’t only just gain the necessary funding, but you gain something which is worth a lot more than just money – a social identity. The people that are funding your crowdfunding campaign aren’t just going to give you the funds are forget about you. They’ll stick around since they believe that your business or product has potential and they want to see how it develops. Even before your startup or business will launch, you’ll have amassed a considerable social following which will act as a proof of the advantages of your product. Social proof means more traction, more traction means more business and more business means success. Your crowdfunding campaign investors will be with you for the long term and give you the exposure you need by sharing your product/service link on their social media.

Normally, people have to spend a lot of financial assets on marketing and advertising but running a crowd funding campaign does more than any standalone marketing campaign – for free! When you start attracting a considerable number of investor’s news outlets, magazines, Youtubers and even TV news reporters will give you the exposure you need without having to pay them or promote them.

You need to keep in mind that the people you want to invest in your business or startup will only do so if your product or business has potential or contributes to society. Your business or start-up needs to offer something unique or a good incentive for people to invest. The only way you’ll be able to get Crowd Funding is by making a campaign that highlights the features of your product or service and makes it stand out from the rest.

Category Business

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