Crowdfunding benefits for startups

Although raising money is usually the main goal of a crowdfunding campaign, it also comes with additional benefits to complement your funding round.

Crowdfunding can provide startups with access to a broader pool of investors, a more cost-effective fundraising method, a community of brand advocates, valuable feedback and market validation.

Marketing exposure

Regardless of the campaign’s outcome, your business will gain significant exposure to the platform’s investor base. Additionally, intense marketing efforts from both the platform and the company can increase the company’s exposure and visibility across its target markets.

Fundraising efficiency

Running a crowdfunding campaign means that all information an investor needs to take an informed decision can be found in one centralised location, the campaign page. This eliminates the need for you to explain the same things repeatedly to multiple potential investors, as you can redirect them to the campaign page to find the investment information they need, allowing you to focus on running your business.

Concept validation

A successful campaign is the perfect proof of concept and validation of a potential market for your product or service. Managing to hit your funding goal with a large number of investors goes to show that these people believed in you and your product/service. Using the momentum of a successful campaign, you can later raise additional funds from institutional investors.

Brand advocates

Crowdfunding can help startups build a community of engaged supporters and customers. By investing in the company and becoming early adopters of your product or service, these investors become your brand ambassadors, spreading the word about your company and helping attract new customers.

Crowdsourcing of ideas

You can source suggestions from different perspectives by presenting your business to thousands of potential investors, customers, and community members. This can provide you with invaluable feedback and ways to improve. It is then up to you to evaluate the information sourced and update your plans accordingly.

How to raise capital