Having explored several of the open options available to would-be entrepreneurs seeking to establish their own business in an earlier post, it would now seem that the next logical step is to break down some of the information included therein. The last point of discussion covered; following on from government sponsored grants, loans and the currently rather odious concept of bank borrowing, was the modern marvel that is crowdfunding.
Essentially drawing low risk investment from a mass audience sourced through the internet, crowdfunding is the secret behind many of today’s leading start-ups and is recognised as a legitimate seeder in all kinds of industry. Read on for a quick cross-section of some of the day’s most popular crowdfunding sites and how they might just help you on your way to starting up that start up you have always wanted to start…up.
Currently one of the most well regarded resources of its kind, crowdfunder.com also ranks highly in the ‘relevant name’ polls, or at least would if such a poll existed. Combining donation-based and part-share investment models, the site is championed by users past and present on account of its continued encouragement of collaboration both online and offline.
Equity raised by the site currently stands north of $60million, and the site has helped over 35,000 budding business bees find flight to date. For its services, crowdfunder.com will skim a solid 5% from funds raised as well as deducting transaction feeds of anywhere between 1.9% and 5%.
Another very popular crowdfunding resource with an exceptional name wholly reflective of its purpose, kickstarter.com is easily the most recognisable platform of its kind. Offering individuals with a solid creative concept a podium upon which to preach, the site operates on an all-or-nothing model which is useful for building urgency, though which liquidates funding pools which fail to meet their target.
Arguably harnessing the highest levels of traffic within the crowdfunding category, it may be unsurprising to learn that kickstarter.com operates a rigorous approval process. Furthermore, the site is only available to those based in the UK or US.
Setting itself aside from other crowdfunding sites by way of association, Rockethub.com provides users with a rather unique scope of visibility through its partnership with A&E Project Start-up. Offering not only a way to raise the funds needed to get your business up and running, but a firm helping hand once said funds are in place. Rockethub.com is the primary crowdfunding resource of an increasing number of people, and with good reason.
Though currently unable to match up to the likes of Kickstarter in terms of traffic (and ultimately the number of potential investors/donators exposed to your proposal), the site’s figures are growing. With an excellent interface and superb supplement features such as Success School however, who really cares about traffic?
These are just three of the hundreds of crowdfunding websites available for your utilisation as an aspiring business owner. A lack of education on their worth has led many to believe that they are somehow less valuable and/or commendable than their more traditional counterparts. I’d like to disclose here and now- that is absolute nonsense, and encourage you to go exploring in order to find the crowdfunder that’s right for you and your (hopefully) unique vision.