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How to Start a Crowdfunding Business

Crowdfunding is a very general term. In fact, it is so broad that it comes in a variety of channels such as equity funding or general funding, some of which are not yet U.S. based. You have to decide first on the format you want to take such as either loan, contribution or reward platforms. These are the most popular and active in the United States. These models or platforms can be different and have to be handled differently. On the Internet, you will find tons of crowdfunding opportunities across the globe that you can get ideas from.

Starting Out

Starting out with crowdfunding can be a challenge because crowdfunding is a vast area. Therefore, it is best to target your industry or smaller groups that cater to your special niche. You could also think about altering the rules yourself. At the moment, the rules for raising money using a crowdfunding platform allows people only to get all, nothing or keep everything. However, you can create an easier process for business owners by negotiating and offering benefits such as more exposure or share of the profits.


In your crowdfunding business, you could team up with attorneys and other business professionals to get their expertise. You could also take advantage of project management companies that can help you to set up your business, advertise and market your business or supervise your project for a fee. You can use crowdfunding organisations as a resource for gathering information that provide creative tips, direction and due diligence services. Shopify provides an ecommerce solution to building a website. Also, you can get a good domain name at http://crowdfundingbusiness.com for your crowdfunding business. The website also offers joint partnerships.


Take advantage of crowdfunding software applications and crowdfunding solutions through CrowdEngine. This means that you can access the expertise of crowdfunding software companies and have your own branded software that come with customised templates and payment processing integration. You can do a tradeoff or barter, but most of these come with fees or percentage payment.


If you are planning to start a crowdfunding business, you need a strategy and plan. You may also need to hire technical skills to create marketing campaigns or blog posts. You will also need social media expertise to get the word out. There are so many crowdfunding business platforms being launched on and offline. Therefore, you will have to do things to stand out in the crowd such as viral marketing and blogging.  

Legal Implications

With crowdfunding, there is a lot of money involved. You will be raising funds to fund your business from people all around the world with different laws. You should solicit the services of an attorney and accountant so that you are in compliance to these laws. Have your business legally set up properly so that you won’t have issues later. If you are going to launch your business online, make sure you have the right internet speed and security.

These suggestions are only a few ideas of how you can start your crowdfunding business. Most of the initial steps are similar to other business, but crowdfunding is a specialised industry. Therefore, you may need to take the extra steps for success. 

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