08 May 2019, India, Crowdfunding:
Low Cost Capital
Scouting for investors has become a daily ordeal for many founders across the nation. Getting cold shoulders from investors especially at the ideation stage has become a regular exercise for them. Though there are many other options available for availing funds most founders knock wrong doors many a times.
Being mentor and fund advisors, we help StartUps to look at grants, competitions and incubation programs to garner funds. However if it is an innovative product based StartUp then we recommend to go for Crowdfunding.
Crowdfunding helps in getting investments in the form of pre-sales and in addition reaps in a sea of benefits. It is known fact that approximately 8-10% viewers only take the ‘call 4 action.’ However the entire eyeballs get a first-hand impression of your existence. That’s massive branding and helps in validation with raising investments while creating orders for the product.
Crowdfunding is basically of two main types pre-sales at a discounted rate that is product based and the other is equity based one. You could either sell your ware or offer shares to the backers.
However what are the ways to hit the bullseye in this 50:50 % chances endeavour. Market your innovation well ahead of launching on crowdfunding. Plan a powerful story with an impacting video that is crisp and self-explanatory.
For better output, plan continuous campaigns, multiple campaigns yield better results. Be realistic while setting goals and get patents before running the campaigns because you never know when a crooked brain awakens.
Any campaign that achieves its one third of its target in the first week is on track. Keep posting developments and plan various marketing strategies to reach faster. Keep track of the viewers and post the latest developments on a day-to-day basis like the backers registered daily, product enhancements. Be open to accept audience’s responses through active engagement with backers group.
Crowdfunding, since its origin in the US on May 22, 2012 has been the best source world over for acquiring low cost capital. The collective funding ordeal where each one contributes a significant amount, pools up into a massive resource for a StartUp to scale up.
On the whole Crowdfunding is one of the best options to test waters for early stage StartUps. However planning with caution, identifying the right set of audience to be targeted, safeguarding with necessary compliances and setting realistic targets while running multiple campaigns help in garnering investment with market validation.
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