Crowdfunding is many times more what it used to be five years ago – today, there are almost 1000 crowdfunding sites on the internet. What’s more, the opportunities in crowdfunding have attracted major brands such as Oculus VR, which managed to earn $2.4 million on Kickstarter before being bought for $2 billion by Facebook.
Research also shows that crowdfunding tactics and approaches are evolving as time goes by, making the concept easier to understand for many people but incredibly hard to implement.
Like Richard Swart, a crowdfunding expert and the director of research at the Program for Innovation in Entrepreneurial and Social Finance at UC Berkeley , puts it, “the dirty secret of crowdfunding is that it is incredibly hard work. In crowdfunding, people behave like herd animals and follow success. If you have not raised about 30% of your money in the first two or three days, the odds are pretty good you won’t be successful.”
Among other things, choosing the right crowdfunding platform the thousands of sites on the internet particularly plays a crucial role in your campaign’s success.
Choosing the ideal site
As an entrepreneur, you need to look for sites that offer equity financing, as these are the ideal platforms to meet accredited investors looking for the ideal opportunity to invest in. Here, you will need to take note of certain factors:
• For starters, ensure that your business already has some momentum of growth and outline its potential to give potential investors surety when investing – investors want hard evidence of likely profits and not an idea
• Make sure you have a lawyer and accountant to guide you through the legal and financial aspects of the campaign – it is important to follow all the rules and regulations of the SEC
• Have something tangible to show for your contribution. Effort and diligence is one thing, but investors will appreciate your monetary contribution to the project, as this is evidence of just how much prospect you have and how far you are willing to go
The 5 top sites for crowdfunding for entrepreneurs
Here are five of the best sites guaranteed to incorporate quality and appeal to your crowdfunding campaign for better chances of success:
This is an up and coming crowdfunding site designed to help artistes showcase their art and get funding to nurture their talent. It was started by a non-profit group known as AIM and has already made significant achievements – it has so far helped Kristin Dowdy, an Indiana dance major, to raise over $2000 for support her upcoming CityScapes project, which will explore and document different cities, their features, and unique landmarks.
A creation of former Google employees, Upstart.com allows everyone to raise money to meet their needs – whether growing a business or college money. The platform is very easy to use – you only need to appeal to funders and make plans to pay them back from a percentage of your future income for a certain period, say 5 to 10 years.
However, one of the requirements to get funding on Upstart.com is to make a target to raise at least $10,000.
This site was originally launched to empower women by showcasing their products and talents. However, it has recently upgraded to a crowdfunding site to help women entrepreneurs get the funds to grow their businesses.
This is a crowdfunding site affiliated with the popular Dragon Innovations hardware firm based in Boston. It is designed exclusively for hardware entrepreneurs to help them grow their businesses.
However, it is important to first note that there is a flat-rate start-up fee of $5000 for preparation.
This platform hopes to go a step further by connecting entrepreneurs with potential investors or co-funders and allowing entrepreneurs to come together and share ideas.
However, it is still in its beta stage but has currently undertaken several projects such as Hyperloop – a plan for high-speed, solar-powered transportation system in the city.
With the crowdfunding industry projected to reach $3.98 billion soon, these sites are guaranteed to offer you the best opportunities to get funding for your business – remember to take your time when choosing to ensure you pick the ideal one for your business’ needs.