Your thoughts on crowdfunding?

Ryan O'Bleness

Community,

In another post I recently commented on, I brought up the idea of crowdfunding to secure startup capital. I know crowdfunding campaigns are very involved. It can be a lot of work every day, and may yield zero results. But if your campaign is successful, it can be more than enough to get your business off of the ground. Oftentimes, you're also responsible for giving away gifts or shares for certain donation amounts.

I want opinions here. Is crowdfunding an acceptable way to raise money for your startup? Have any of you tried it? Was it worth it? Is it the new wave of funding? Let me know!

For those looking for more insights on crowdfunding, check out this article:

https://startupnation.com/grow-your-business/what-small-businesses-should-know-about-crowdfunding/?utm_source=community&utm_medium=12158&utm_campaign=existing-topic%20

danbu1

I will be trying at kickstarter soon. My project is already approved but I am not ready to launch yet.

My project needs about 40K-50K but more importantly I need the publicity of being on that platform. I thought it would be difficult to get 50K by myself, so I decided to find 50 people to join me and give them incentive to raise $1000 each. I believe most of the funding will come from the people who knows you, unless your project happens to goes viral. Therefore, I think I have a better chance with 50 people with smaller goals.

I am very curious to hear from others also...

Ryan O'Bleness

Since we've already discussed your project, I think crowdfunding is a good idea for it, but remember that on Kickstarter, you have to meet the entire goal in order to get any of the money. I do believe platforms such as Indiegogo and GoFundme allow options to keep your money if the goal is not met, so you may want to consider those. Though, it seems like you've already started with Kickstarter, which I'm sure will work well!

danbu1

Ryan, good point. I may consider options.

I have not read through their terms but is there any restrictions to signing up for multiple sites?

Ryan O'Bleness

danbu1 wrote:

Ryan, good point. I may consider options.

I have not read through their terms but is there any restrictions to signing up for multiple sites?

I'm not sure if there are any specific rules against using multiple platforms, but crowfunding campaigns are very robust. I would advise to sticking to one campaign. This will allow you to put your efforts all in once place, and it will allow your backers to have one place to go. You wouldn't want to confuse yourself, your backers or the press if it catches on in the media. You know what I mean?

danbu1

Very good point. I am leaning towards indiegogo.

DavidKS

Hello there,

we are also aiming for a kickstarter campaign early next year. Hence I am an advocate of a crowdfunding campaign, but only if you are not dependent on it. I think it should be a good way to raise money for your project or business and get awareness and first revenue. But soley working with it as a "bet it all on this card" kind of thing is not the way I believe.
As already mentioned working with one platform only is definitely the way to go. If Kickstarter won't work out we are also looking at Indiegogo as a substitute platform.
I like the article shared at the beginning of this post, definitely worth a read!

ktummonds

Crowdfunding is a great way to get funds for your startup or project. Some Crowdfunding Campaigns have been quite successful in the past, and have not only received a lot of money, but press too. I would recommend thoroughly researching Crowdfunding to get a better insight. As for Crowdfunding Engines, there are some that stand out! Like Thrinacia Atlas. Their Crowdfunding Engine has been receiving clients migrating from other Crowdfunding platforms. The reason people are switching is because Thrinacia Atlas is very dynamic, with their Wordpress widget and mobile App. The concept is quite simple, you can create a portal to send supporters to, in this web portal, you have created a campaign which the supporters can donate to. You also have the option of other users creating a campaign on your portal, which you receive a percent of the donations that the other campaigns earn. Its a win - win situation for both the portal admin and its campaign creators.

DavidKS

Hi yes crowdfunding is great and for everyone wondering where to look for opportunities or information about it look here:

http://crowdfundingforum.com/showthread ... -Expanding

I hope that I don't break any community rules with linking another forum ^^

MLPerk94

I as many others will also be launching a Kickstarter campaign. I believe it's a great way to raise the money that you may need as well as getting your name out there!

I'm launching a new company called Suds & Company on Kickstarter December 1st. We are the first ever all natural, vegan, cruelty-free and 100% customizable soap company! Allowing customers to pick and choose the best body oils and butters for their skin type. We also only use 100% pure essential oils and color our soaps with all natural clays and activated charcoal.

Come check out our twitter page @SudsAndCo

Motosnipe

Hello everyone, just registered here to read some info and poasiblt get advise. I too am trying to start my own business, and have recently launched two different campaigns.

I started a Gofundme and Indiegogo campaign, as of now I have yet to receive any contributions, but am hopeful it will turn out. Im only looking for a max of 2500, but i have seen other campaigns with similar amounts net nothing. Goodluck to you on yours, hopefully we all get some luck.

Gregory101

Crowdfunding is mostly “dead money”. Sure, if you meet an angel investor on AngelList you might get the added value (experience, domain expertise, mentorship, network) that usually comes with traditional investors, but I’m guessing that’s not what you mean by crowdfunding.

When VCs (and some angels) invest in your company, they usually have capital reserves to make sure they’ll be able to support you if and when times are tough. That’s not the case with equity crowdfunding platforms.

At later stages, crowdfunding is sometimes a red flag for some investors, who read the company’s choice to raise money from an online platform as a weakness (or at least, lack of experience) in raising money from real investors.

Crowdfunding usually requires early stage companies to divulge more information than they may be comfortable with, especially if they’re operating in stealth mode.

Ryan O'Bleness

That's an interesting point regarding crowdfunding, @Gregory101. There are pros and cons to pretty much every funding option, though. 

Also, off topic, but I  see you're from Jacksonville. I am actually big fan of the Jacksonville Jaguars myself. 

cryptobailey

If you're a startup or know someone who is involved with one you should check out CoinStarter. CoinStarter launched yesterday and is already catching attention. It will help you launch your startup today! Follow the link to create your account: https://coinstarter.com?ref=dt3ndxx3j

CurtisMLee

I think crowd funding defaults will be quite a big story in the next five years. And I will have no sympathy for those who complain that they have lost money. The phrase 'due diligence' springs to mind.

Gordon

Crowdfunding is a method of raising capital through the collective effort of friends, family, customers, and individual investors. This approach taps into the collective efforts of a large pool of individuals—primarily online via social media and crowdfunding platforms—and leverages their networks for greater reach and exposure.Crowdfunding is essentially the opposite of the mainstream approach to business finance. Traditionally, if you want to raise capital to start a business or launch a new product, you would need to pack up your business plan, market research, and prototypes, and then shop your idea around to a limited pool or wealthy individuals or institutions. These funding sources included banks, angel investors, and venture capital firms, really limiting your options to a few key players. You can think of this fundraising approach as a funnel, with you and your pitch at the wide end and your audience of investors at the closed end. Fail to point that funnel at the right investor or firm at the right time, and that’s your time and money lost.To your question

It's a good initiative to do something rather than just stay put and waste time.