Should You Crowdfund Your Business? : Under30CEO Should You Crowdfund Your Business? : Under30CEO
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Should You Crowdfund Your Business?

| March 27, 2012 | 1 Comment

A recent article on MSNs Business on Main goes over the idea of crowdfunding to raise money for your company. Crowdfunding is still a relatively new concept but has made a lot of noise in the past year. You may have heard of sites like Kickstarter which started the whole idea and now companies like IndieGoGo and many more have jumped into the mix.

Crowdfunding is the basic idea that you can raise money from anyone without getting a loan or giving up equity. You just have to be creative and come up with some things you can offer everyone who chooses to fund you.

Some examples from the article:

Let’s say you want to fund a sandwich shop. You’d list your business on one of the various crowdfunding sites (see below) and offer to name a sandwich after someone for a month in exchange for, say, $100. Do that 50 times, and you’ve got $5,000.

A filmmaker looking to finance his movie might offer a credit at the end in exchange for an investment of, say, $250.

One woman in need of a new boat hull for a trip around the world promised investors a postcard from each of her many stops, and even that worked.

Learn more about crowdfunding and how people are using it.

This article was brought to you by MSNs Business on Main

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Category: Startup Advice

  • http://getLoudSilence.com Loud Silence

    There are definitely some pros and cons to it. We were successful with the funding for our first launch but made little to no profit which brought us back to square one. Our Kickstarter campaign was pretty strong so we lost some steam in the months after our first collection raising capital.

    We got the ball rolling again and gaining back some of that steam and support that we received on our successful Kickstart campaign.

    http://getLoudSilence.com