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Using Crowd Funding Sites to Raise Money for Your Small Business

by:QY Precision      2019-08-27
If you want to raise money for your business or project, an important consideration place is the increasing number of \"crowdfunding\" sites.
Sometimes referred to as \"crowdfunding\" or \"crowdfunding capital\", crowdfunding provides collective cooperation for people who are willing to concentrate on supporting projects, activities and businesses of interest to them.
Basically, you show the community what you think and interested people may support all or part of the investment you need.
Members are usually not professional financiers and usually provide only a fraction of what you need.
The amounts given vary and may be as low as $1 or as high as $2,500 or more.
Then your goal is to find more interested people who are willing to help you figure out the amount you need for your business or project.
Most supporters will give you their commitment because they believe in your project.
But in order to attract people to support you, you need to consider what you will provide in return (
Usually based on the amount they provide).
The leading crowdfunding network today is Kickstarter.
Most projects are creative efforts (
From art to brochures to movies).
One of their most recent successful projects is the diy desktop CNC machine, which allows \"hobbyists or evil scientists, small-
Manufacturers of scale or budding inventors, from-
Accurate screen design-
The product can be processed with just a few mouse clicks.
\"The goal of this project is to raise just $15,000.
But it attracted 277 supporters who promised to increase the target by another 348% to $52,200.
Those promises from $5-
$11 will receive a thank-you letter and a small memorial plaque, but a commitment of $2,500 or more will receive an operating machine. (
Adbygoogle = window. Adbygoogle | []). push({}); UK’s CrowdCube.
Com, on the other hand, focuses only on entrepreneurs and businesses.
Here, investors will not receive a thank-you letter;
Instead, they received a percentage of equity in the joint venture.
Investors will gain equity in the business through shares.
However, the site is still new and there seems to be very few projects going on. PeerBackers.
Comalso focuses on entrepreneurs.
The promised person usually receives the final goods or products from the project instead of giving up the equity in exchange for the investment.
Before considering whether crowdfunding is a good way to raise the money you need for your business, be sure to read the rules carefully.
Research the promotion and type of projects that successfully raise the required funds.
However, it is important to be aware of the risks involved in the solicitation on the crowd purchasing website.
The biggest risk is that your idea is fully disclosed.
Whether your pitch is successful or not, your ideas will exist and it is possible to be copied and developed by better people --
Competitors with funds
When issuing shares of your company to other parties, also be careful with government regulations, as well as the tax impact of financial support obtained from the mass purchasing website.
For successful crowdfunding campaigns, read 40 tips on how to use crowdfunding to raise money for your business.
Business. Read Part 2: List of crowdfunding websites
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