4 Reasons the world needs more Crowdfunding websites
Posted on September 8th, 2017
Global crowdfunding has touched the mark of $16.2 billion. Startups today are not dependent on banks and private investors to provide them with the funds required to build or scale a business. Crowdfunding has made entrepreneurs independent of any politics or networking hiccups for raising funds. It has empowered start-ups to raise funds solely from the power of their idea and their products.
It is remarkable to see, how startups get benefited from crowdfunding. There are established players like Kickstarter, Indiegogo, and Gofundme which are providing millions of dollars to entrepreneurs via the crowdfunding channels. If you are an entrepreneur, you can only run a crowdfunding campaign on any of these platforms, or you can create your path by building a customized crowdfunding platform. This may sound absurd to many, but with the appropriate agency partner, you can have your platform running in next to no time. This is easily achievable with the help of the right team and the usage of the correct crowdfunding clone script.
On the other hand, there are P2P lending software and P2P lending platforms like Lending Club, Prosper and Upstart. Here a list of few of the many benefits, crowdfunding can provide to a startup business:
1. It provides validation to an idea
When thousands of people are ready to invest in an idea, no matter how small the amount is, it signals one thing – that people believe in that idea/product. Usually, startups have to run pilot projects in different circumstances to understand whether people will accept the product or not. That said, when such a big number of individuals invest in your product via a popular crowdfunding platform like Kickstarter or Indiegogo, it validates your idea; it shows that there is a significant market for your product.
2. Free market research
Since the product is reaching out to thousands if not millions of people, many of them critically analyze the product before deciding to invest in it. The investment might be as small as $10, but it comes from the hard earned money of the commoners. Hence, people tend to analyze the products and then provide their feedback. Entrepreneurs can also analyze the profiles of investors in such products to study; what kind of people will be interested in their products and services. This provides free market research data to entrepreneurs.
3. Free marketing
Many people browse through these crowdfunding platforms looking for products and ideas with caliber. If your product has the required amount of promise, it will pick up the interests of many. Many investors from crowdfunding platforms also like to talk about innovative products on social media, which can help you get your share of earned media for zero additional expenses. This way, the power of idea will motivate people to have a look at your product offerings. Result – marketing at no added costs!
4. Leverage free funding
Usually, funding can be a hefty task for any entrepreneur. Meeting and pitching investors, negotiating the term sheet and so on. But, with crowdfunding in place, entrepreneurs can simply rely on the power of their idea to attract investors who are ready to invest with next to zero conditions. Since the amount invested by each investor is small, they are not at huge risk. This allows them to invest in a great idea, without thinking the hindrances like security, guarantee and performance based funding. Ultimately, these small investments by hundreds and thousands of investors can help the entrepreneur raise his desired amount!
These are the reasons why the world needs more crowdfunding websites. To help innovative minds out there crowdfunding platforms are required and entrepreneurs can start their own platforms. To get started easily you need a powerful crowdfunding script that can help to build such platform in no-time. You can look for an efficient clone scripts developer who can help you develop a functional website without major overheads, using an open source crowdfunding script. You can also check out 7 ways to scale up your Crowdfunding Script.