In this post i would like to talk about fairly new way to attract funds. Crowdfunding is a two way process between investors and start ups, where you can get literally sponsored by crowd. Basically there are three types of crowdfunding: donations, debt and equity. On one of our lectures we had a discussion about fundraising platforms to turn your idea for start-up into reality in the UK and all over the world such as follows:
1) angels den equity-based crowdfunding. «If you cant beat them, join them» UK Angels Den. Angels can invest money for a share in the business, they take care of documentation and keep investors up-to-date how business is doing. For crowdfunders there are no fees until your business gets funding.
2) kickstarter is a reward-based crowdfunding for creative projects including design, the arts, gaming and technology. Kickstarter accepts projects only from the UK, US and Canada.
3) kapipal is for kapipalists =) is based on the concepts that your friends are your capital as the name of the platform is a combinations of the words «capital» + «pal».
4) crowdcube is equity crowdfunding (UK startups), another well-known web site where investors can back-up entrepreneurs.
Taking into account fact that many people invest in crowdfunding ventures with their emotions. It’s a daring means of investing, but one that drives many crowdfunding investors to put money into something in which they personally believe. My pathway in International Business Management is Entrepreneurship. Issue of attracting funds and finding the investors for sure will be vital for my future career. I pointed out few tips for the potential successful campaign at fundraising platfrom: 1) be realistic for the financial target 2) you have to create smart and outstanding elevator pitch 3) you are your marketing team. I am definitely inspired now as i saw lots of innovative talented projects which found their investors.
olgaspasskaya 