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How Crowdfunding Can Launch Your Startup

When the JOBS Act was signed in April 2012, it expanded the reach possibilities of crowdfunding-based investments. Entrepreneurs and investors will no longer be limited to donations or reward-based programs. Rather, they will be able to take full advantage of equity-based investing on a crowdfunding platform. This means that crowdfunding can reap all the benefits of large business investment. Investors earn equity rather than rewards, and startup companies can accept large sums from angel investment groups as well as individual contributions. If you are in the process of developing your own tech startup, these changes mean that crowdfunding can help you launch your business to the next level. Equity crowdfunding brings you publicity, investors, and control that was unheard of before the JOBS Act.

You Remain in Control

Before crowdfunding, investors had the right to demand changes that met their bottom line rather than yours. But when you accept investments through crowdfunding platforms, your creative business plan does not need to answer to anyone else. By putting your model online, investors are choosing to invest based on those ideas alone. They do not have the right to request changes or require you to modify your ideas to meet their goals.

Free Publicity

Crowdfunding platforms will help you save money on advertisement by doing that footwork for you. Websites like KickStarter are free, giving you ample space on the internet to create your platform and essentially advertise it on their website. Your business will be right in the middle of the public eye, giving social media and online voices easy access to your business model, your fiscal goals, and your investment opportunities. From there, you can direct the public to your page through free social media accounts like Facebook, Twitter, and Tumblr. Once your startup becomes recognizable and investments start pouring in, the bloggers and online magazines will take it from there. With free publicity, your funds and your time will be freed up for more important business affairs.