Whether it concerns a startup business, or an already well-established company, collecting enough funds to keep it going can be tricky. One of the traditional, and so far the most widespread ways is Angel investing. It implies gathering money from wealthy investors like businessmen, lawyers or even doctors, who in return get an equity in the company.
The positive side is that their financial support might get your company to the next level, but on the other hand you are giving them power over a part of it.
Consequently, this could lead to them deciding upon your future in the company, and eventually taking you off the leading position and leaving you without anything.
What Are Crowdsourcing And Crowdfunding?
To avoid previously mentioned risk, you should choose some other ways of achieving your goals, and one of the most popular ones in the last couple of years was crowdsourcing.
Entrepreneur, digital marketing manager or small business manager, you are not limited by your profession, but what matters is the idea and your wish to realize it.
Crowdsourcing means collecting ideas from the crowd that ideally consisted of group of experts in your field of interest, and another term, crowdfunding means collecting funds from anyone willing to pitch in, regardless of the amount of money they are prepared to invest.
Depending on your interests and the idea that you have developed, there are several successful crowdfunding sites for you to choose from:
Kickstarter is for creative and artistic souls, rather than for some business endeavors, charities or personal needs. So if you have an interesting, ahead-of-your-time idea, this is the right place for you to look for financial support.
Indiegogo has a flexible and broad approach, and it is a good starting point for people with personal needs, hobbies, charities and also for musicians on the rise, but not startup businesses looking for their place in the corporate world.
Crowdfunder, with its large and fast growing group of investors makes it the perfect choice for companies on the rise, seeking the seed capital.
RocketHub is unique for its aim to connect campaign owners and marketing partners in order to help them create a successful campaign together.
Crowdrise is a great choice for charities that wish to have and insight in how successful their campaign was and how much of an impact they have made.
Examples of Successful Crowdfunded Campaigns
If you still have doubts about the efficiency of the crowdfunding method, here are some examples of different science, educational and artistic projects that had great success over the last couple of years:
- +Pool, the building of a floating swimming pool with filtered river water. Funded by Kickstarter, this creative idea enabled New Yorkers to swim in a clean water in the middle of the river.
- The Grand Theft Orchestra with the project leader Amanda Palmer, who gained her popularity by giving a rather inspiring speech on TED, launched a new music album thanks to Kickstarter.
- GoldieBlox is an innovating idea which broke all stereotypes that say that there is a division into male and female jobs. This particular toy was designed for all little girls with talent for engineering, and soon after it first went public, it became a great hit.
- NeuroOn is another successfully crowdfunded idea. It is a sleep mask that can help you know when you are likely to fall into a deep sleep by measuring your eye movement and muscle tension. This product proved to be much needed for the modern society.
Why Is Crowdsourcing A Good Choice For Me?
Finding investors might take a while. A couple of months, or even a year or two, and when you have an idea that you wish to realize in near future, waiting this long is not an option. What you have come up with might be ahead of your time and it will be hard to find someone in your field of interest to pitch in with such large amount of money.
The fact is that even though it might be an excellent idea, if the investor does not know you, he will not be ready to take risks, as he does not want to lose his money. So if you do not personally know anyone who might support you, the best option is to look into the crowds.
It might start a bit slow, as the people tend to donate small sums, and it might seem that you will never reach your goal. But, with just a little bit of patience, everything will pay off.
So if you believe that you have a good, innovative idea, do not give up on it so easily. Yes, money is always the biggest obstacle in its realization, but there are always a couple of ways to collect it, and one of the effective ones is crowdfunding.
Present your design to the masses and there are people who will share your vision and want to invest in it.
featured image credit: Flickr / Rocío Lara