1) It's much more efficient than traditional fundraising.
If you're an early stage business that is focused on building its company as well as bringing in seed money you may not be able to pay for the amount of time and energy required for traditional financing. As opposed to seeking a loan or finding accredited investors creating an effective crowdfunding campaign on Fundable or another platform is much more effective and efficient in distributing your message to the most relevant people. If you choose the right platform, you can share your company's story, make a brief video, and set up attractive rewards, and gain by having everything on one place where potential donors can find your company.
2) It's a platform to create momentum, social confirmation, and proof.
A successful, well-known shop fund campaign can give you legitimacy and social proof essential in charting your course ahead. If potential customers express an interest in your company's products or services, it's created social proof - proving that others are convinced about what you're doing. If early adopters are able to vet and believe in your concept they are more likely to follow. Social proof can be translated into traction, whether it's a huge number of supporters, pre-orders or media attention. It's a huge asset when you present your idea to investors elsewhere.
3) This is a great opportunity to use crowdsourced brainstorming to improve your concept.
Are you hearing potential investors poke through your plan, or asking you difficult questions? Don't be offended and consider it crowdsourced brainstorming. The foundation of a successful company is discovering a crucial unfulfilled need customers of yours have and choosing to fulfill it. Therefore, it's crucial to take advantage of any opportunity for feedback from customers and incorporate it when you plan your startup. One of the best things about crowdfunding is the proximity it makes you to clients, giving them a the an opportunity to interact with them in a conversation and answer concerns, questions, complaints and suggestions. It's never too early to know that your company's new idea for the future could originate from someone who's not even working for you.
4) It will help you get early adopters as well as loyal advocates.
The people who drive your brand's credibility are the first users and brand supporters. They're those who believe in your product, story or service enough to bet on the longevity of your idea and its long-term viability. Early adopters are crucial for the successful running of your crowdfunding campaign as well as the momentum you build following the end of the campaign, since they're those most likely to be willing to share your idea with family and friends, and spread the word about it on their social networks.
5) It can also be used for marketing as well as media publicity.
Press coverage can draw more attention to your campaign , and will create long-lasting branding for your business. This could take an article or feature in a well-known news outlet or blog, or even a print publication. It's also an excellent way to draw people to your cause outside of your own personal network. A great article or tweet will create a huge snowball effect, placing you in contact with investors who you may not otherwise have reached. It doesn't matter if they read about your latest product on a well-known site or heard about an exciting campaign through a friend A successful crowdfund is an excellent opportunity to draw new investor interest.
Crowdsourcing has become an effective way for early stage companies and entrepreneurs to establish their company's credibility as well as discover investors or early adopters and gain the attention they require to expand. For a quick overview, some of the most effective ways to help a crowdfunding campaign create more momentum for startups than other funding methods include:
It's more effective than traditional fundraising.
It creates momentum, social proof and also provides validation.
This is a great opportunity to use crowd-sourced brainstorming that can help you refine your concept.
It will help you get early adopters as well as loyal supporters.
It can also be used for marketing in addition to media coverage.