Equity based crowdfunding is a new source of funding for your startup or project. We are all familiar with projects and startups raising capital via rewards-based crowdfunding sites like KickStarter and Indigogo. On sites like these, in return for their financial support, contributors might receive a discount on a future product, or maybe a “virtual high-five”. What if those contributors could become actual investors?
- As investors, they have a real reason to promote the business actively. According to wefunder.com, “It’s also best at turning customers into investors that are a marketing force.
- This is also an alternative way to test your concept or vet your business idea. “A crowdfunding campaign is a good sign of traction before raising VC,” noted Ethan Mollick, Professor of Management at the University of Pennsylvania’s Wharton School.
- We’ll discuss other benefits as well, like obtaining customer feedback and lower cost of capital.
So if you need capital to fund an idea or prove a business model, equity-based crowdfunding might be the answer. Millions of dollars have been raised via this relatively new funding source
Speaker: Speaker: Glenn Champagne, Angel Investor, Launchpad Venture Group
Co-sponsored by MA Small Business Development Center