Crowdfunding was mentioned in another post here on the website which mentioned one of our clients using it as a way to get the money they needed for a down payment on a space.
This is a follow up with a link to an article by Shopify with a list of the 8 Best Crowdfunding Sites. Let’s start with the follow up on the campaign for the Bean and Pie.
Did Bean and Pie Successfully Fund?
It was successful! They raised the money they needed and will now be moving forward with the next phase in their business with an actual brick and mortar location. This is a great example of how using your sphere of influence and digital marketing to raise funds outside of going to a bank or looking for an individual investor or group.
Raising capital for your next venture can be a major hurdle on the road to bringing your vision to life.
While bank loans and pitching to traditional investors are still viable fundraising options, crowdfunding gives you the opportunity to solicit support from the crowd: a group of individuals who collectively invest in your idea to make it a reality.
What’s more, crowdfunding can also give entrepreneurs a way to validate demand for their ideas, before they enter production, by letting others “buy into it” with pre-orders, donations, and investments.
I am going to list the eight they mention in their article and provide the link at the end so you can read the entire article and the details about each one.
Link to the article: 8 Crowdfunding Sites to Raise Money For Your Big Idea
The Good, Bad, and Ugly
As with anything you do be sure to do your research! This can be an ideal way to get a needed cash infusion for your business (if it is successful). But, you must also make sure that whatever it is you offer to the people who choose to fund your project it is something you can execute on.
Nothing will make people have a bad taste in their mouth faster than feeling like they are not recognized by you not fulfilling on your promises. Not a good way to create a loyal customer base.
Have you every used crowdfunding for your business or been a supporter of a funding project? Tell us about it in the comments.