Crowdfunding As A Way To Finance Your Business Needs

Crowdfunding has revolutionized the way many people finance their small business ideas. It was nearly impossible for startups to get a loan, raise capital from a bank, or find investors. Hence, the emergence of sites like Kickstarter, IndieGoGo, Cadre, and more, has changed the world of financing for small businesses.

Instead of seeking traditional financial support, entrepreneurs can now go straight to the public to seek funding for their ventures. Many small business owners have discovered that this is the best way to get started. Thanks to crowdfunding, they have taken their business from concept to launch without worrying about raising capital from a bank or venture capitalist.

Crowdfunding is one of the riskiest things you can do as an entrepreneur since it involves the practice of soliciting small loans from many people in return for equity in a project, business, or idea. But, as with many things in life, it’s also one of the most rewarding. The good news is that, as an entrepreneur, you don’t necessarily need to raise millions of dollars to get your business off the ground. In fact, with the right amount of research and planning, you can start your business with as little as $500. 

Available crowdfunding platforms connect people who want to pitch ideas with people who want to invest in them. In addition, business-specific platforms connect investors with businesses.  For example, an entrepreneur sells shares in their company, which gives them financial security. That gives you a high level of visibility and a chance to pitch your idea to investors interested in your project. 

Real Estate Investments Through E-platforms

Real estate investing is a great way to earn money and grow your portfolio. It can be challenging, but it can also be rewarding. You can choose whether you want to invest your money in commercial property or invest in residential real estate. Either way, the benefits are the same. There are a lot of risks associated with real estate investing, but that’s what makes it so exciting. You get to explore new markets, work with different people, and learn. If you have big dreams and a big heart, real estate investing might be the right fit for you. 

With the emergence of new technologies, the internet has enabled and accelerated the growth of many new industries in recent decades. Real estate investing was no exception. The internet has made it possible for anyone with an internet connection to access and participate in real estate investment projects. That has made it easier for people with limited capital and low-level experience to invest in real estate projects—the emergence of new regulations. The rise of online platforms like Cadre is an example of this.

Six Successful Internet-founded Ventures That Grew to $1 Billion in Revenue

Today, more and more companies are turning to crowdfund to fund their start-ups. In addition to the apparent cash benefits, there are several other reasons to use crowdfunding. We’ll show you how five multi-million companies started on crowdsourcing sites like these and became household names, and some have already made it to the stock market.

1. Oculus VR headset

A company that was successfully financed

When Oculus Rift creator Palmer Luckey launched a crowdfunding campaign in 2012, he was barely 20. Nevertheless, more than 9,500 people contributed to his campaign, which raised over $2.4 million, making it one of the biggest crowdfunding success stories.

In 2014, Facebook paid $2 billion for the Oculus VR, which it purchased later. So when you think of Facebook (NASDAQ:FB) apps and services, the Oculus Rift probably comes to mind. In 2012, Kickstarter launched its first crowdfunding campaign.

2. Popsocket

A successful Kickstarter campaign

David Barnett, a philosophy professor in Colorado, invented the first Popsocket in 2010. The headphone line was getting twisted, so David used super glue to attach two buttons to the back of his phone and then wrap them around the buttons.

The initial PopSocket is designed to keep the headphone wires securely attached to the phone. Despite their horror, the buttons did their job. A Kickstarter campaign for Popsocket, one of the most successful crowdfunding businesses, was started in 2012. Due to its longevity as an Amazon bestseller, Popsocket continues to be a top choice for smartphone users around!

3. Allbirds

Crowdfunding a business

Allbirds (NASDAQ:BIRD), founded in 2014, quickly became one of the most successful crowdfunding firms in the world. The most convenient and comfortable shoes ever, according to major media publications, are the Allbirds. In just five days on Kickstarter, they raised over $120,000 from 970 backers and ended the campaign.

The brand is considered one of the fastest-growing companies globally in the footwear industry. In addition to Nordstrom, Outdoor Voices, and even Shake Shack, a sporty model (plus a more recent slipper-like variation) of the $95.95 logo-free unisex merino wool sneakers are available. Everyone from Larry Page to Marissa Mayer has been seen sporting them. Likewise, Silicon Valley residents came to enjoy Allbirds footwear.

4. Peloton

Peloton Crowdfunding Company

Peloton (NASDAQ:PTON) is a household name among fitness enthusiasts everywhere. Indoor exercise bikes with giant touchscreens have spawned an enormous online community. Yet, initially, Peloton may be a single product: an indoor cycle with an LCD screen attached. 

The firm was formally established in 2012 after receiving initial money of $400,000 from a group of angel investors. After building a prototype bike and demonstrating the idea, Peloton raised an additional $3.5 million by 2012. In 2013, they started a Kickstarter effort to generate interest in the cycle.

5. MVMT clocks

One of the world’s fastest-growing watch companies and one of the most successful crowdfunded enterprises is MVMT, founded by LaPlante and roommate Jake Kassan, who dropped out of college.

In 2013, LaPlante remembers, “MVMT began with a basic issue,” and the firm was born. When Jake and I looked for an economical, fashionable watch, we couldn’t locate anything that met our needs.” This generation can’t afford to spend $500 or $1000 on a timepiece out of the blue. So when we discovered that watches were a terrific crowdfunding platform, Jake and I remarked, “We can do this.”

One of the first crowdfunding campaigns, Indiegogo, opened in 2013, and the second was created in 2014 and funded to the tune of $300,000. According to Business Today, they made more than $100 million in total sales in just four years.

6. Brooklinen

Success on the crowdfunding platform Indiegogo

The first thing you notice on the Brooklinen website is “Really Good Sheet”. There was an earlier campaign in 2013 in which Rich and Vicki Fulop of Brooklyn collected almost $236,000 using the viral tactic of large and bold photographs of dogs on beds with their linens before they were allowed to make this declaration.

In 2013, Kickstarter launched its first crowdfunding campaign. Approximately $236,888 has been raised thus far. A total of 1733 individuals have shown their support.

Brooklinen made $48 million in revenue last year alone, according to data compiled by Business Today. In 2019, revenue grew by 40% to approximately $100 million. Summit Partners will invest $50 million in Brooklinen in 2020.

Entrepreneurs may learn a lot from these crowdfunding success stories, whether they are seeking an investment source or if the founders do not want to give up shares at the beginning stages of their firm. Likewise, your firm or product may perhaps benefit from these successful crowdsourcing campaigns.

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