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Crowdfunding-What Is It All About?

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Crowdfunding is a process of increasing the capital through collective effort of family, friends, individual investors and customers. This process really taps in the collective efforts of a large number of individuals through different social media websites and crowdfunding platforms to leverage their networks for greater reach and exposure. Read more great facts on crowdfund loan, click here. 

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Crowdfunding is known as the opposite of the mainstream approach to the business finance. Before, if you would like to increase your capital so you could start a business or introduce a new product, you need to create a business plan, create prototypes and conduct a market research and then offer them to a limited number of individuals or institutions. Some of the funding sources are venture capital firms, banks, angel investors, and other institutions. Imagine, fund raising is a funnel, you and your pitch is at the wide end of the funnel then the investors are at the close end. If you fail to point your funnel at the right firm or investor at the best time, then you will lose money and time.  For more useful reference regarding sites like go fund me, have a peek here.

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Crowdfunding platforms is the other way around, you will turn the funnel. Since they will provide a single platform for the entrepreneur to create, showcase and share their pitch resources, this kind of method dramatically streamlines the traditional approach. Before, you would need to spend months to go through your own network, checking on potential investors and spending your own money and time just to meet these investors. With crowdfunding, this process becomes so much easier, since you have the opportunity to meet individuals that are interested and provide them ways on how you can grow your own business, from investing thousands in exchange for an equity which is contributing to about $20 in exchange for a first-run of your product. Please view this site https://www.entrepreneur.com/article/229436  for further details. 

  

Here are the advantages of crowdfunding:

A.Reach

When you use crowdfunding platform you can have access to a lot of qualified investors that you can see, share your fundraising campaign and interact with.

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B. Presentation

When you create your own crowdfunding campaign, you will be able to go present your business by starting with its history, value proposition and more. 

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C. PR and Marketing

You can now advertise your business or product through the internet, like in social media websites, other websites and in email newsletters. 

D. Efficiency

The best thing about crowdfunding is that it has the ability to streamline and centralize all of your fundraising efforts.

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