Does Investment Crowdfunding Really Work? How Can You Make Crowdfunding Work for You

From angel investing to crowd funding, everyone wants to raise money for their new business adventure and it’s quite understandable. It is so tough to get the necessary funding to get your small business off the ground and for most they have a great idea but can’t make it work as their funding is poor. That is why more and more are choosing to look into crowdfunding and it’s certainly a stunning idea. However, does crowdfunding really work to get proper investment and if so, how can it work for you?

Venture Capital Can Be Raised With Crowdfunding

Home-based businesses as well as thousands of potential entrepreneurs want to raise some capital to get their ideas off the ground and it isn’t as difficult as you would think. Crowdfunding has really taken off in recent years and it’s all down to how effective can be. So, will it be possible to get the investment you need? Well, yes it is but it isn’t just as simple as you would think, there needs to be several things done on your part in order to gain the trust of the investors and to raise the capital. Investment crowdfunding is a wonderful idea and it really is something that works for you as well.

You Must Make a Strong Case for Investment

If you want to attract the investors and actually help them part with their money, you have to make a case as to why they should invest in you. Now, these investors are regular people, not millionaires and usually invest only twenty or thirty dollars at a time (they can choose to invest whatever they like) and you have to entice hundreds. This isn’t impossible but you have to make your advertisement standout from the rest and it’s important to get your investors. It doesn’t matter if you want to look into angel investing or another investment route, you have to make it clear what your goals are and what you want to achieve. Click here !

Offer Investors something they’ll appreciate

Investors want to see something in return, they are not going to get a share of the profits but they want to know they’ve done their bit. It wouldn’t be a bad idea to offer maybe a thank-you in the form of a gift such as a t-shirt with your logo on it or something similar. This is actually something which many will appreciate and it shouldn’t cost too much either. These free-gifts can also help entice others to invest with you too. Venture capital isn’t impossible to raise but you have to give something back.

Crowdfunding Can Work If You’re Willing to Do the Hard Work

When it comes to crowdfunding, a lot of people aren’t overly convinced this will offer them enough money to get their business started. However, there is the real potential for this to work and it can even go into buying some of the most necessary pieces of equipment to get your business …

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The Rise of Investment Crowdfunding

So tempting when you think of crowdfunding thinking purely in terms of Kickstarter; the project where candidates only a freebie or two from the startups they’re backing and the buzz from seeing a project they believe in making it to market. In the recent years, there has been a crowd-investment platforms groundswell particular with the passing of Jobs Acts 2012.  The rise in platforms enabling investors opportunity o club together and invest in buy-to-let and even commercial properties. The investors in some platforms are able to support all from legal battles to university education.

The common thing in all of these is that they offer citizens a chance to bunch together with other people to support a project expected to yield the good rate of return.

Crowd-investing

It’s one of the interesting platforms, although its remains at the margin of a much larger crowd-investing movement. As revealed by CrowdExpert there several platforms offering investors the chance if backing interesting companies using the approach.

The platforms generated $2.1 billion startups investing in 2015 and have shown considerable growth in 2016.  Crowdfunding has been labeled potentially the most disruptive of all the new modes of finance and World Bank predicting that crowdfunding investment increase to $96 billion by 2025.

The questions to review are;

  • What is equity or investment crowdfunding?
  • The difference between investment crowdfunding and the rewards-based crowdfunding?
  • How does investment crowdfunding fit your fundraising strategy?
  • What is the JOBS Act?
  • What are some examples of investment crowdfunding successes?
  • Can anyone invest in companies on Crowdfunder?
  • Does Crowdfunder comply with the securities regulations?

What of equal funding?

The growth is supported by leveling effects crowdfunding has on who can attract investment, the study showing women can do better when it comes to crowdfunding. The success is largely attributed to the fact that women are better at telling a story to persuade investor for the backing of the project.

The road to success

The significant of appealing to the heart plus head is reinforced by a study done. The results showed things such as good audio-visual support use is critical to a successful win fund-raising via the crowd. Experience and the previous record of the success proved crucial success markers.

Understand the sources are important as the crowdfunded projects have limited access to market data than typical private equity investors. For private equity investors, you have to follow a rigorous due diligence process to access the quality of startup help, thus crowdfunding backers rely more on the information on the campaign web page.

Building trust in the market

The crowd based market are fairer, to achieve the growth levels predicted, they will need to ensure high trust levels both in the quality of fundraiser and in the due diligence or simply worthiness of the lender. It’s argued that the hint of distrust arising in the industry placing the firm brake on growth levels, especially during the early stages with a legal status of the industry is yet to be fully formed.

The …

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Angel Investing Vs Crowdfunding: How to Raise Money for Your Startup?

Angel investment and crowdfunding have both become popular methods to raise money for start up businesses and it isn’t hard to see why. Today, there are sometimes limited options available when it comes to injecting money into a new business because let’s face it; there are not many people who are willing to take a risk. However crowdfunding and angel investing could provide most with a new and exciting way to raise cash for their start up.

What Is Angel Investing?

Angel investments are simple. The people who offer angel investments are usually individuals with business experience and usually have their own company. The typical investors have a high net-worth and are happy to lend a hand to newer businesses. However, in exchange for the investment money they will take a stake of the business. Basically you get an investment and they take a few of the company’s shares. This means they have a stake in the business. Angel investing can be one individual or a group of individuals looking to invest.

Is Angel Investment Risky?

This isn’t a loan so that when someone invests money into the business they are not going to demand repayment. In a sense it isn’t overly risky because the investors have an idea of what they are getting into. This is technically an investment for them and as most will know investments is always a risk. However, for business owners and those looking to get their company off the ground, this can be a good option to consider. Of course, while you might not be the one who takes the risks, there is still an expectation to succeed and sometimes investing companies or individuals are hands-on.

Raising Cash with Crowdfunding

Crowdfunding is a lot different from angel investments. Anyone can raise money through the use of crowdfunding websites and platforms but there are some restrictions. Usually businesses can’t raise more than one million in a single year and the fees can be a little problematic. However, this can be great for those who don’t want a partnership and don’t want to have that added pressure of succeeding within a year. Investors can be anyone from all walks of life and when they visit crowdfunding websites and see an idea they like the look of, they invest. Find out more here.

Which Is Best?

To be honest, both Angel investing and crowdfunding are impressive. They offer different things which can in fact be great. It doesn’t make the decision harder but rather less complicated. As most will understand, every business is different in terms of what they need to run and how they operate. Some businesses will benefit from looking at angel investments while others will benefit from crowdfunding. It comes down to the individual business.

Make an Informed Decision

This is not going to be an easy decision to make because you want to raise money for your start up business but want the method which is suitable. Now, if you don’t want to …

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