With crowdfunding you can raise money for your own company. Crowdfunding has advantages, but there are certainly also disadvantages. What are the do’s and don’ts of crowdfunding?
Banks have been sitting on their money since the crisis years. It has become more difficult to get money for financing. That explains the rise and popularity of crowdfunding. You borrow money from a group of investors, as it were. What should you take into account and what are the reasons for not choosing it? Read these tips for getting started with crowdfunding
What are the do’s when raising money for your own company?
Crowdfunding works fast. Within a few days you can arrange everything and also have the money available;
Investors are more innovative compared to banks. They are more willing to invest in start-ups. Banks are often reluctant to do this;
Thanks to crowdfunding, you may be able to get a loan from a bank. For example, you need an investment of € 250,000. With crowdfunding you collect € 100,000 and for the remainder banks are more willing to step in;
Investors can already get in with an investment of € 100. By spreading the risk, more investors are willing to contribute;
With crowdfunding for starting your own company you not only get investors, but also people who support your idea. This can make all the difference to success;
What are the don’ts for raising money for your own business?
Crowdfunding is probably less suitable for building an extension of the business premises. The investors mainly look for companies that are innovative and that have a good idea to tap into a new market, for example;
You enter into a financial obligation that you must meet. It is easier to agree on a payment arrangement with a bank;
Funding is only successful when the target amount has been raised; In case of bankruptcy you can also be addressed privately. Seal this risk well before you start crowdfunding;
If your company is not making it financially, you have probably also affected people in your area. Your environment probably also invests in your initiative;
You pay interest and repayment from the first month.…