Benefits of Crowd funding

Everybody who wants to start a business knows that getting business loans is like going to the moon! Venture Capital application success rate is below 1% and the guarantee that you would get the funding for sure is another 2%. That is the reason that these days crowd funding is another way to get investments for your company. Crowd funding is a crowd of individuals who invest in your company in exchange for a small share in the company or a percentage of ownership in the company.

For any company, crowd funding is not only a way to raise money, but it is also a good way to gain visibility, to gain validation of the genuineness of the company and also, to grow your customers online. Small businesses and enterprises benefit immensely from the crowd funding industry.

The objective of crowd funding is to build an audience .When you verbally tell random people about your company and ask them to donate, they wouldn’t be interested in doing so. A successful Crowd funding campaign provides entrepreneurs with the funds needed to launch or expand their business. Online communities and social networking sites also increase the visibility of their project and hence help in getting donations and funds faster.

People in your neighborhood might know about your business. But not everyone would become your clients nor would any of them think of investing in your company just because of your acquaintance.  Launching a Crowd funding campaign and allowing them to become investors brings forth loyal customers and word-of-mouth marketing of your company right in your neighborhood. This social proof is also one fine way of showing customers and clients the validity of what you are doing. It gives everybody an outlook of what you and your company are all about.