Investment Crowdfunding is when the entrepreneur proposes to his target audience his project so he can get funds for making it become true – all through the internet. Those interested donate money, which makes the proposal feasible. Understand below if your business can benefit from Angel Investing.
In times of crisis, crowdfunding became popular worldwide. Several times it is the ideal outlet for attracting resources and creating new products, services and solidarity activities that do not have the money for an initial investment. See below how the collective financing model works and what it is capable of making feasible.
How Investment Crowdfunding Works
Everything starts as a good idea. This means that what you intend to do will truly satisfy the needs and desires of your target audience. Unlike a startup, which goes through many stages until it becomes attractive to investors, crowdfunding needs to engender immediate engagement in its target audience. After all, he is your investor. There are no intermediaries. It is therefore very important that you are sure that you will be able to count on a critical mass of supporters of your project, so that you will reach the amount necessary to carry out your plan.
When proposing collective financing, you should pay attention to the nature of your project. It will define how crowdfunding will work for you. There are many people willing to do Angel Investing.
Expose your project properly
Your project can best fit into an all-or-nothing proposal, where you only get the money if you reach the full amount within a deadline. This creates a more aggressive mobilization by the public. If you do not get there, the money donated is returned. Another model is the flexible one, when you get the full amount of what was raised by the deadline.
Activities that Benefit from Collective Financing
There are projects that engage an audience out of sheer willingness to see it come true, even if it does not directly benefit. This is quite common in the Third Sector, traditionally dedicated to social, sporting or ecological causes. Purchase of objects for the infrastructure of shelters and schools, sports equipment for athletes or for the setting up of a collective vegetable garden in needy communities are examples. Even in the classic business world there are crowdfundings that can raise the money needed for the entrepreneur to start the operation. Only by the desire to see the project take place. Business involving fashion, food, crafts, cosmetics and other products can benefit as well.
Angel Investing can help you with a partner
Depending on the desire of the entrepreneur, this investment can also make each contributor a kind of partner. This is equity crowdfunding. This involves creating company bonds, where the developer-investor can negotiate a financial return. Other projects may involve rewards. This means that the public that funds the idea will gain something in return, as like as books, music albums, shows, events. The idea is to return the donation in the form of the investment result. Contributors receive copies of the publication that moved the donation, tickets to the show that counted on the help, and so on.
How to start Crowdfunding
The internet has revolutionized the collective financing scheme of a project. It is through the network that a large number of projects are announced and donations are made instantly.
You can do this yourself, manually, through emails, a website, or a page on a social network. However there are many online platforms specially designed to detail your project, propose ways to participate and measure the results achieved in real time, everything to help you get Investment Crowdfunding.