Crowdfunding is fast becoming a genuine funding option for start ups to fund their earlier phases of growth – it is not only those who are unable to access Bank loans or get the support of business angels that are turning to crowdfunding, but also businesses that want to run on their own, without being forced to give up a large slice of the company.
The following, are the top 10 benefits of crowdfunding:
- It provides access to capital.
- It hedges risk.
- It serves as a marketing tool.
- It gives proof of concept.
- It allows crowdsourcing of brainstorming.
- It introduces prospective loyal customers.
- It’s easier than traditional applications.
- It’s free PR.
- It provides the opportunity of pre-selling.
- It is free!