a beginner's guide to business crowdfunding

BUSINESS CROWDFUNDINGA Beginner’s Guide to

WHAT IS CROWDFUNDING?“Crowdfunding is a method of raising capital through the collective effort of friends, family, customers, and individual investors.”

WHAT ARE THE BENEFITSOF CROWDFUNDING?

REACHTop crowdsourcing platform sites like Fundable give you access to thousands of investors who can see, interact with, and even share your fundraising campaign!

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PRESENTATIONWhen creating a crowdfunding campaign, you go through the process of looking at your business from the top level and boil it down into a polished and easily digestible package.

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PR & MARKETINGFrom launch to close, you’ll be able to share and promote your campaign through social media and other online marketing tactics. Throughout your campaign, it’ll be easy to steer traffic to your company website and other resources as well.

@astroguy on flickr

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VALIDATION OF CONCEPTBy presenting your concept to the masses, you’ll have the opportunity to validate and refine your offering. If potential investors show interest or ask questions, you’ll be able to decide if something is missing and if you need to make any changes to your campaign.

@tom_weilenmann on flickr

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EFFICIENCYOnline crowdfunding allows you to centralize and streamline your fundraising efforts. By creating a single, comprehensive profile, you demolish the need to pursue each investor individually because you’ll be able to present everything online in a very accessible format.

LEARN HOW TO CREATE YOUR PROFILE WITH

FUNDABLE, ONE OF THE TOP CROWDFUNDING SITES.

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@graceshome on flickr

WHAT ARE THE DIFFERENTTYPES OF CROWDFUNDING?

Donation-based crowdfunding is when there is no financial return to the investors or contributors. Common initiatives include fundraising for charities, disaster relief, nonprofits, and medical bills.

CrowdfundingDONATION-BASED

REWARDS-BASED

Rewards-based crowdfunding occurs when individuals contribute to your business in exchange for a reward. These rewards are usually the product or service your company offers. Since there is no financial return, this type of crowdfunding is often associated with donation-based crowdfunding.

Crowdfunding

EQUITY-BASED

Equity-based crowdfunding allows contributors to become part-owners of your company by trading capital for equity shares. This enables contributors to receive financial return on their investment and a share of the profits (dividend or distribution).

Crowdfunding

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