startups in Chennai

How Crowdfunding Helps Startups

How Crowdfunding Helps Startups

Startups in India
"Success is best if it is shared"- Aptly quoted by Howard Schultz (Chairman, Starbucks). We quite often hear people thanking somebody else for his or her success, be it their parents, mentors or spouse. Have you ever heard someone thanking everyone else for his or her success?
While pondering starting a own home based business, firstly , involves one's mind is Funding. Personal savings, loans from friends, relatives, and Loans from banks include the hottest solutions to fund a business startup, along with expose business strategy plan, an entrepreneur could pitch to Venture Capital firms or Venture capital angel investors for funding. With the alternation in era and technology, now we have an alternative solution way to obtain funding readily available for the startups that is Crowdfunding.
This sort of not familiar on the concept, Crowdfunding is an way to improve funds from your many people online. All you have to do is make a campaign and upload it over a crowdfunding website and earn it viral with the aid of social media marketing. Those who genuinely care about your project and finds interest in the same will give rise to it. In turn, they are going to get yourself a reward or equity because the case may be.
As there are various kinds of crowdfunding, a couple of them which fit perfect for startups are:
1. Reward based Crowdfunding - Under such a crowdfunding, the backer gets a reward in substitution for his contribution. This reward could be a handwritten thank-you note or early bird customized product itself. It depicts the gratitude of the project owner for the backer, these are those things that money can't buy and provides an exclusive feeling to the backer.
2. Equity-based Crowdfunding - Here, people who bring about your campaign would receive equity/shares with the company in exchange.

Startups Fund

Using this unconventional means of raising funds, the financial woes of entrepreneurs are lowering. They now need not knock the threshold of investors, pitching and convincing them until the end. You do not need being frantic and giving presentations to several people. All you need to do occurs your small business well online.
Crowdfunding enables the entrepreneurs to pitch their idea with a broader audience rather than specific investors. With social websites prevailing so much nowadays, it can be much easier to find like-minded people to give rise to assembling your shed. Everyone can contribute to your idea; you just have to make certain that people be familiar with assembling your project.

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