The Changing Landscape of Startup Funding: Equity Crowdfunding
Startups are the lifeblood of our economy. They provide innovation and new technologies that feed into all sectors of business, from healthcare to education. However, it can be difficult for startups to find funding because they don’t have a long track record or revenue stream. Equity crowdfunding is changing this by giving small investors access to startup investments with low fees and high returns.
For those who are unfamiliar, equity crowdfunding allows startups to raise money by selling shares of their company online. This can be done through platforms like WeFunder or StartEngine. Investors can browse investment opportunities and invest as little as $100 in a company. This makes equity crowdfunding an attractive option for small investors who want to get involved in the startup scene.
Equity crowdfunding is also changing the way startups fundraise. In the past, startups would have to go through venture capitalists or angel investors to get funding. This can be difficult because VCs and angels are looking for a high return on investment (ROI). Startups are risky investments, so they require an extremely high ROI. This means that startups were forced to give up a lot of their company in order to get funding.
Startups are Finding Relief From Their Financial Issues via Equity Crowdfunding
For startups, equity crowdfunding has been a useful tool to access low-cost, high-return investments. It’s also allowed them to control more of their company without having to give up as much equity. This means that startups can focus on growing their business rather than looking for funding.
Equity crowdfunding is also benefitting investors. It’s an excellent way for individual investors to get involved in the startup scene while investing small amounts of money. This means that anyone can have a part in growing new businesses and helping our economy flourish.
Startups Don’t Always Need to Be Good At Presentations
Don’t be fooled by the popular belief that you need to be able to give a great presentation in order to get funding. While it certainly helps, it’s not always necessary. Equity crowdfunding allows startups to raise money without having to go through a presentation. This makes it an attractive option for startups who are shy or uncomfortable with public speaking. An effective equity crowdfunding marketing strategy and of course, an idea that holds potential goes a long way in securing funding in this type of funding.
Startups Have Broader Audience in Equity Crowdfunding
The fact that startups have a broader audience in equity crowdfunding means that they can raise money from a wider range of people. This is a big advantage over traditional methods of fundraising, such as going through venture capitalists or angel investors. Startups can reach out to their friends, family, and fans to get investment for their company. This helps them to bypass the gatekeepers in the funding world and get the money they need to grow their business.
Social Media Becomes More Important to Startups Than Ever
Social media has become more important to startups than ever before. This is because social media platforms give startups a way to reach a wider audience. They can use social media to share their story, get feedback on their product, and connect with potential investors. Via social media, startups can reach a wider audience for their equity crowdfunding campaign and spread the word out there — that they are raising funds through equity crowdfunding.
Investors Can Watch Your Campaign Grow
Investors can watch your campaign grow, which creates the potential for more investment down the road. This is because they can see how much traction your campaign is getting, and whether or not it’s something that they want to invest in. Seeing a well-funded equity crowdfunding campaign grow can inspire investors to invest in your company as well.
So, what does this mean for startups? It means that they now have more options when it comes to funding their business. They can choose between traditional methods of fundraising and equity crowdfunding. This gives them the opportunity to find the best option for themselves and their company. And, as equity crowdfunding continues to grow in popularity, we’ll see even more startups benefitting from this funding option.
If you are looking for help with your equity crowdfunding campaign, KiwiTech can provide you with a marketing service that will increase your chances of success. We have many years of experience in marketing and the know-how to reach your target audience. We will create a campaign that is tailored to your needs and will help you reach your funding goals. Contact us at jeff@kiwitech.com today to learn more.
