Need cash to start your business but don’t have a venture capitalist on speed dial? You may be able to get the seed money you need from a crowdfunding site. Think of crowdfunding as financial crowdsourcing or community venture capitalism for the little guy.
On crowdfunding sites, ordinary folks like you and me can invest small amounts of money — $10, $25, $100 or whatever you care to give — in specific entrepreneurial projects, like the business you want to start on Zoondy. Those small $25 and $50 investments might not seem like much; but multiplied by dozens or even hundreds of donors those small amounts can add up to a significant sum and provide enough seed money to enable you to launch your business on Zoondy.
Crowdfunding offers the additional benefit of bringing your business to the attention of hundreds, possibly thousands of potential clients. Crowdfunding investors want the people they support to succeed so frequently become early clients, giving your business an initial boost.
An internet search will turn up many crowdfunding sites. Some are restricted to the arts, home furnishings, movie making, business services and other specific pursuits; but many are open to all. You’ll find entry instructions on each site which should be followed closely if you hope to be selected as one of the site’s candidates. You may need to present a business plan and financial specifics to make the cut. It will be up to you to prove that an investment in you and your business will pay off.
Before making a submittal to a crowdfunding site, research the site thoroughly and read the fine print. Some sites require you to pay back investors (sometimes with interest); others don’t.
For more information on crowdfunding, read the Zoondy Daily.