Crowdfunding allows investors, supporters or charitable donors to fund for-profit business ventures or non-profit initiatives and other projects and campaigns, via the internet, usually facilitated by an online platform. This approach funds new projects and businesses through many – and often small – contributions from willing sponsors around the world. Crowdfunding often takes the form of philanthropy and other social giving with no prospect of financial return. For early-stage start-ups, crowdfunding can be used to generate capital through simple lending models or investment in return for equity, revenue or profit.
Vincent Breslin shares some of the challenges, benefits and pitfalls to successful crowdfunding. Recording took place in the midst of a successful crowdfunding round for his online meal planner business Sian’s Plan.
In addition to raising money, Vincent discusses other benefits of crowdfunding including managing and lowering risk, impressing larger investors, validating an idea, and building a loyal community and consumer base. He also gives an introduction to the mechanics of running a crowdfunding campaign and liaising with an online crowdfunding platform provider. Finally, Vincent gives some tips on how to promote a crowdfunding drive through blogs and in the media.