Advantages of an Equity Crowdfunding Platform Make It So Popular All Around!
Every business start-up needs capital. Smaller businesses and individual entrepreneurs aspiring to build an enterprise have a brand-new concept, for mobilizing funds from their known resources, instead of approaching Banks and financial institutions. Equity Crowdfunding Platform is the best alternative for the conventional methods of capital rising.
What is Equity Crowdfunding precisely?
As the word “crowd-funding” itself denotes, this is a concept of raising funds for starting up a venture, manufacturing and marketing a new product or achieving any other business objective. Unlike the traditional method of shareholders and investment entities, here the investors will be family members, friends, relatives, friends of friends, prospective customers and private investors – each one individually.
Towards this Crowdfunding purpose, an Online Platform is created so that it acts as the “face of the funding project”. The theory behind this novel concept of Crowdfunding is age-old : “Little Drops Make The Ocean”. Individual investors contribute towards the common purpose of business fund raising, each with equal share of interest, benefits and profit from the ultimate business venture.
There are three types of Crowdfunding namely – Donation-based as is the case of religious and charitable institutions; Reward-based more or like Equity-based, where the contributors get some specified rewards for the investments over a period; and Equity-based where the investors become equal partners of the business, sharing the profits and benefits accruing. Of these, Equity Crowdfunding is very much advantageous, viewing from any angle.
Top 10 Advantages of Equity Crowdfunding:
- Hassle-free access to capital: Entrepreneurs and business houses need not be at the mercy of Financial Institutions, and suffer from their procedural wrangles. Instead, they can explain every aspect of their ensuing business prospective at one online platform. In this campaign, they can put forth all their cards on the table, to convince the investors and make them “willing partners”.
- Reduces risk greatly: The individual investment being small, the risk is also reduced vastly. In fact this is the major Selling Point of Equity Crowdsfunding – minimum risk and maximum returns.
- Besides money you get people: The investors as partners of this business, make your project, campaign and marketing viral, passing on the message one-on-one.
- Best Marketing Tool: Internet and social media platforms enable global visitors converging on your Equity Crowdfunding Platform. Thus diverting organic web traffic to your site becomes a breeze.
- Consumer-confidence reaped easily: The credibility of your concept is proved, when more and more visitors throng your site. It is vital to gain this sort of concept-credibility to achieve overwhelming business success.
- Preselling your product or project: The moment your campaign is accepted by investors, your major responsibility of working hard to sell your product or project is over. Your “investor-partners” will sell them for you.
- You get free brainstorming: When more brains than a few are at work, your partners ask questions, raise doubts and feedback new ideas; and thus open up new vistas and avenues for development.
- Exposure to media: Your Crowdsfunding platform gets maximum exposure by the crowds visiting your site; and Medias will vie with each other, to show your business in maximized limelight.
- Permanent Loyal Customers: Every investor joining your funding will become your permanent loyal customer.
- It is absolutely Free: Instead of your going behind institutions for finance, people come to you and offer funds Free of Cost!