Advantages of crowd funding
If you are a new guy in town and you don’t know the rules of the banking game, crowd funding might be the answer to your financing problems. It gives you a range of benefits, from quick and easy fund raising to valuable feedback from customers. Read on to find out what advantages crowd funding offers and how experienced investors from the design, film and music industry developed successful businesses from scratch using crowd funding.
No matter how good of an idea you have, you need finances to make this idea real. Securing funding is a long and troublesome road, you can ask any entrepreneur. Before crowd funding, all they could do is to go for one of the traditional options: apply for a loan, borrow from family and friends, or pull out cash from your savings account. If you have a loyal and engaged community, and you need to launch your idea quickly, crowd funding is the best way to go.
Validation of your idea
Many junior businessmen use the crowd funding platform to achieve market validation – Finecrowd App becomes more and more popular due to its simplicity. They can utilize this financing model to make a bigger impact with their new product or service. On the other hand, investors can use these platforms to identify new ideas and promising projects which show potential. For example, Jibo launched the new concept of the “social robot” to investors and venture capitalists. The company managed to raise almost 4 million dollars through crowd funding campaigns. Market validation is now faster, easily scalable and available to practically everyone.
Gather market insight
The path from a mere concept to a product ready for the market is a long one. Not to mention expensive and time-consuming. Crowd funding gives you a chance to get the essential feedback and explore how the market reacts to your idea. Fans and consumers will provide precious insight about the quality and design of your product, allowing you to refine your concept, think about different approaches and acquire creative solutions.
Build awareness quickly
The internet is a global tool. Billions of people have access to it, all day, every day. Ideas spread like wildfire on the net, and what is a local news bulletin today, can become a global frenzy tomorrow. All you need is a bright idea, some thoughtful marketing, and belief in your product. And don’t forget to listen to your audience, because they are your best source of feedback.