With the lack of loans granted by financial institutions, small business owners are finding other venues where they can get funding for their business ventures. One of the most popular options now is crowdfunding.
If you have not yet heard of crowdfunding, visit Kickstarter or Indiegogo. These are two of the most popular crowdfunding websites. Look over some of the campaigns and immerse yourself in the beauty of this relatively new funding venue. It is poised to outpace traditional funding institutions within the next decade.
Although it has seen sparse usage since the 17th century, it started gaining preeminence in 2001 with ArtistShare, a crowdfunding website enabled to provide a way to fund new musicians. Over the years since, there have been several other crowdfunding websites, but none have gathered the following and popularity of Kickstarter and Indiegogo.
Crowdfunding is based on the premise that it is much easier to generate funding through a large pool of small donors than it is through a few large donors. This also has the unintended consequence of generating mass interest in the project itself. It can be the marketing vehicle through which the project sees lasting success.
Donors do not just give through the kindness of their hearts, but are also given a Thank You gift by the campaign. These gifts are determined by the project creator and amount donated by the backer, but the gifts awarded cannot be any sort of equity stake in the project, although this may change with upcoming Congressional legislation.
If crowdfunding is not a part of your startup or inventor plan, you may need to look over it and see how it can help offset your business costs and increase your market share. For those of you who have had any experiences with crowdfunding your projects, share them below and help others succeed.
If you need help creating or marketing your crowdfunding campaign, contact Brainiacs Lounge today and see how we can help your campaign succeed.