Published on October 21st, 2014 | by Jose Vasquez0
5 Reasons to Consider Crowdfunding for Startup Tech Companies
Crowdfunding is gaining momentum as a means of acquiring capital for all kinds of projects, and startup tech companies are at the top of the list.
Crowdfunding was once treated with a certain level of mysticism, as some wave of the future that only the super lucky could utilize. But as platforms like Kickstarter become more popular and more diverse, the world of crowdfunding is becoming practical for far more businesses and entrepreneurs.
While some startup tech entrepreneurs might prefer the old fashioned methods of gathering funding, or might put up all the capital themselves, there are five key reasons why you should at least consider crowdfunding for your startup tech company:
- It’s consolidated. No more courses of networking events or desperate attempts to get in front of angel investors. Everything is consolidated into one place—and many investors, from small to large, will be coming to you directly.
- It’s almost exclusively online. You might not even need to get up from your desk. Good crowdfunding campaigns take time to develop, but for the most part, you won’t have to go many places. All you’ll need is information about your idea and a few promises to your potential investors.
- It’s getting popular. Kickstarter has already seen thousands of successful campaigns, and crowdfunding platforms are constantly appearing for niche interests. As crowdfunding becomes more popular, its practicality will only increase.
- You can build a community. Many people will see your idea, and become immediately familiar with your brand and product. It’s a great first step to launching a product with an established fan base, and can be your first hurdle in building a social media campaign.
- You get fast feedback on your ideas. If your idea is lacking something, people will let you know. Conversely, if your idea is great, you’ll be able to tell almost immediately. Crowdfunding is more than just a way to get capital—it’s a way to measure the interest of the market.
Ultimately, crowdfunding might only give you a portion of what you need, but it might also support your business for a year or more—you won’t know until you try. Many entrepreneurs have already found massive success from using crowdfunding, and that number will only grow as platforms continue to arise.