CrowdFunding your Business?

Has anyone taken the approach of trying to crowdfund their business either via equity crowdfunding if you are not in the US, or Incentive crowdfunding if you are in the US? Just wondering if the crowdfunding model could work for an online business vs an invention. Been reading a lot at http://Crowdfundingforum.com and although I am skeptical, it appears that Crowdfunding will be the next big thing when the SEC sets forth the new regulations for equity funding. Some say it may be a $1 trillion market in a few years time.

Opinions?

 

Can you please summarize what's that ?

 

Crowdfunding is basically when a company goes out and tries to gain funding for their idea or product by taking small amounts from a large crowd. This is instead of searching for large investors to fund their project.

 

Me and my buddy tried Crowdfunding from Prosper & Lending club. Worked out great. We raised $14,000 to put into a real estate deal. If you want to try for an online business by all means give it a go. What is there to lose but everything to gain.

 

CrowdFunding your business is quiet amazing and will possible do a lot for business. Thanks.!

 

I agree, its the next big internet thing. Great way to raise money for a small project like publishing an article or big like production of electronic gadgets. Usually you get a freebe for you donation, if it`s for product development it may be that produt it self. I subscribe to some crowfunding sites to monitor available technology showing up on the market.

 

yeah,me too, its the next big internet thing. Great way to raise money for a small project like publishing an article or big like production of electronic gadgets

 

In fact, I think we should start a thread to invite anyone interested to donate to crowdfunding projects, as found e.g. on Kickstarter.com. If anyone here has started a campaign, please write, so we can review your ideas and chip in.

 

Crowdfunding is not for every business as you can see from the "unsuccessfully funded" projects on Kickstarter and other similar sites. It all depends on the status of the individual launching the project and or if you have a really unique product you're trying to fund the initial production or idea you're trying to achieve. Other investor crowdfunding sites like Prosper and Lending Club all depend on the individual's personal credit score to qualify to request money from prospective investors.

 

I agree. You need certain credibility to gain peoples trust. An amateur campaign without project`s website and professional marketing video is rather dicouraging to donate. Also funding an idea rather than product, without material reward like a sample is dounting. At the end of a day it depends highly on promotion and initial pull of contacts that are informed about fund raising.

 

I think it is the next big thing, but needs time to be developed.

 

Great article on WSJ about Kickstarter today talking about just this thing and how many people put up their creative stuff but the things that really take off are gadgets since the producers hand the gadgets out in Beta for the funding they receive.

 

This is a good way to raise money, but I would like to know how will the profits be shared, and do people who invest in the project will have some say in the decisions that will be made by the company.

 

The Social Enterprise Community is a place on Crowdfunder where some of the most creative and meaningful for-profit social enterprises.That is a good way of raised your money.

 

Just make sure, whats beneficial for people who are contributing, and make a killer video pitch. Kick starter will always be used in the US for crowd sourcing projects.

 

We are selling our own Kickstarter clones and this selling process is going very well. So in my opinion crowdfunding is very effective. For some inspiration you may have a look at our website Kickstarterclone DOT NET (we sell the source for $30).

Also we like to discuss with you about new approaces if you like. For this just contact me with PM.

 

Has anyone been keeping up to date on this stuff? Ubuntu has raised $6 million+ on Kickstarter. Crowdfunding seems to be in full swing!

 

I read recently about Buffet and his opinion on the crowd funding. And yes it is very effective way to fund AND promote your business. I was thinking of doing it, just for marketing purposes, but we will see.

 

Knacky, what was Buffets opinion?