BEST PRACTICES of Crowdfunding - Part 6 of the official 7 part crowd funding framework This session focuses on the best practices that you can do during your campaign launch. Your project may be “one of a kind” but success and failure within Crowdfunding do have patterns that can be followed.
Crowdfunding can be a dream come true. It can give your idea the means to make it big.
You get the opportunity to start your project with reduced personal capital requirement. I say reduced because yes, you will have to inject some monies into your project. But if the crowd is attracted to your project, they can provide you with the bulk of monies you need to get your project off the ground. Remember Crowdfunding capital is not a loan, and in the United State, Crowdfunding is not yet equity based. …. You are able to use your funded monies directly for your project without having to worry about shareholders interference or monthly repayments. Your project can stay your project completely.
Crowdfunding also gives you the capability of reaching a vast pool of potential backers that you likely would not have been able to reach on your own. Crowdfunding offers an amazing opportunity to make your idea a reality, while limiting your personal financial risks. If you have the money to fund the project yourself or if your current network of contacts is willing to fund you, then Crowdfunding may not be for you. But the reality is, proper capitalization is a hindrance for most looking to develop a good idea and bring it to market.
If you are wondering if Crowdfunding really works, know that the money is out there and the global crowd wants to back good ideas like never before.