Could Crowdfunding Work for You?
Crowdfunding is online ‘angel investing’ whereby a number of people invest in your business, rather than one individual. With investment amounts of £100 to £10,000 being common, this type of business funding can quickly provide a substantial investment pot.
Investors generally look for businesses offering a high return, sometimes within a high risk industry, or simply a sector in which they already have an interest.
How it works:
You choose your crowdfunding platform, and then make a compelling pitch which usually consists of a video and definitive business information. This is the most important part of crowdfunding as you’re effectively selling yourself and the business.
The campaign is launched, you drum up interest via social networks, answering questions and generally responding quickly to any queries.
The benefits:
- The power of the internet provides you with a global pool of people looking to invest
- You retain full control of your business
- Gauge valuable consumer interest in your product
- It’s free to set up – you only pay commission if the target investment amount is reached
- Investors promote you within their own networks, giving you valuable online exposure
