Crowdfunding has revolutionized the way entrepreneurs are raising capital for their startups. Many startups are turning to crowdfunding to connect to investors who are interested in funding their projects. Dated methods of going to banks and taking out loans are being diminished by crowdfunding. If you are a startup looking to get into the crowdfunding field, here are three easy steps to get you started.
1) Find the right platform: There are so many crowdfunding platforms out there that it can be hard to find the right one. Do you want a reward-based platform or an equity-based platform? If you are looking to fund a project by compensating the investors with the products, services or "perks" of the company, then a reward-based campaign is the platform for you. But if are looking for angel investors that can back your startup, then offering your investment on an equity-based platform is for you.
2) Create a financial plan: Although raising money is key, it is important to never overestimate or underestimate the funds needed. As an entrepreneur, you should know how to present a business plan and define your financial needs. Many investors like to see a very detailed and accurate financial plan along with an attractive campaign.
3) Have Passion: Passion is key in the startup world. At the end of the day, investors who are willing to back you are funding your dream — your passion. As an entrepreneur, it takes courage to implement your idea and present it to the crowdfunding world. Some campaigns don't get funded right away, which can cause the entrepreneurial spark to fizzle and die. Creating and building a startup from scratch takes passion and drive to watch its success. Give people something to believe in, and they'll be more likely to invest.
At FundWisdom, we help startups get into the crowdfunding world. We help entrepreneurs discover how to market their pitch, connect to angel investors and prepare for potential problems related to their campaign. We want to help your startup get funded successfully through our list of equity crowdfunding platforms. Take a look at our startup opportunities; you could be the next crowdfunding success story.