The biggest challenge that every new entrepreneur face while developing his new business is raising essential capital. Many entrepreneurs fail to raise that much essential capital at right time and keep their business development plans on hold. Fortunately, there are few ways available today that can help you raise funds easily and smartly.
Crowdfunding is a new way that enables individuals, startups and entrepreneurs accumulate funds that they badly needed to materialize their business ideas. Fundamentally, crowdfunding is a business practice where a large number of people raise the money needed for a business venture with the help of each other. Crowdfunding platform is a social platform that connects startups, investors and business owners with each other to get their ideas off the ground. What makes crowdfunding a unique practice of raising money is the way money is gathered. This method sets you free from the hazard of searching investors to raise funds for your promising business ideas. Instead of searching potential investors by yourself, a crowdfunding platform works as an intermediator that take your responsibility and help you find investors at your fingertips. All you need to do is just register with the online crowdfunding portal and submit a promising proposal that captures the interest of investors.
How Does Crowdfunding Platform Works?
The process starts with creating your account and submitting all essential information such as your company’s information and contact details to the crowdfunding platform. After that, you also have to give a summary of your executive, business plan and fund projections. Some crowdfunding platforms demand videos and pictures of your project/business.
Upon submission of all the necessary information that is required to promote your campaign, crowdfunding platform verifies the information check existence and legality of your business. Obviously, no one will invest in ghost venture, hence, verification is a must. Once, crowdfunding platform assures the authenticity of your business, it approves your funding proposal and place it online. Crowdfunding is an online platform, all its process from project submission to all transactions are performed online. Then, crowdfunding platform gives you 90 days to gather your target capital.
Once your project or proposal is made alive, investors start looking at. They start evaluating it to find out whether it is promising or not and beneficial for a long run. If they find it fruitful, they show their interest in your proposal and you can get in touch with them. You may expect to receive queries, feedback and reviews from investors. Remember, investors just want to ensure that their investment will not go in vain. In this regards, you need to answer their question as soon as possible and provide them with necessary information. Once they like your project and get completely confident about it, they start investing.
Isn’t it wonderful? So, if you are struggling to raise capital for your business crowdfunding is the best available way that can help you bring your dreams into reality.
To know more about crowdfunding, join CPO Innovation’s pre-conference tweetchat on CROWDFUNDING & FINANCIAL INCLUSION on 15th Nov, 2019 from 3-4 pm IST on Twitter.
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