Investment arenas are versatile, confusing and can be super overwhelming. For a new business there are a few options that can be explored to gain investment either through accelerators, incubators, investment houses, competitions or crowdfunding. The latter option is probably the least scary but can be equally overwhelming. When the moment comes to hit the publish button a sudden rush of anticipation overcomes your being as you start to race through life’s uncertain questions. Will it be successful? Will anyone help me? What happens if I fail at getting enough investment? It’ll haunt you but being an entrepreneur means taking the risks necessary to progress your business. Hit the publish button, take the leap of faith.
Orchestrated from the mid-late 2000’s, the earlier iterations included companies such as Pledgie and IndieGoGo and have since then adapted into major platforms with companies such as KickStarter hopping on the band wagon along the way. In many ways, these companies lit the road into investment arenas for entrepreneurs and start-up companies for the past couple generations. The platforms have also opened up the possibilities for social networks and has enhanced the power it can have for early companies. It’s amazing!
So, among all the choices you can find on the web. Which ones do you go for? Well, majoritively it can come down to personal preference. Some may take the platform that looks to have the biggest crowd supporting businesses, others may delve a little deeper and take a genre specific or business-based stance. At the end of the day you need to do what is best for your company. If you fall short of your goal, it’s not the end of the world. You’re an entrepreneur, get up, brush yourself off and move on.
Take a further look in to the business models that crowd-funding has to offer. The three main pillars are: Reward-based, Equity-based and Credit-based. I’m not going to go into too much detail here because frankly, you’re innovative and intuitive enough to figure it out!
Okay so what platforms are out there? Whether you’re a health company, or in tech, movies or games it’s good to do your research. Even if you do the basic research by going on to each platform and gauging what businesses are on there in numbers compared to how well they are doing. Most sites will give you an overview of recent success stories and successfully funded ideas. They might give you a good idea as to how specific types of businesses fair on crowdfunding platforms.
What’s out there is the first exciting hurdle. You can co go to the big names: IndieGoGo or Kickstarter, crowdsource. Or go a little younger and look at platforms such as CrowdCube, Seedrs or Crowd2Fund. Each of them have their merits and differentiating styles of service but will each facilitate your needs to gain funding.
If in doubt, find a goat and hash it out!