There are many ways you can tap into capital to fuel your company needs; but not all sources are willing or accessible to you.
It is really an issue of the level of risk your company possesses at any given time.
For example, in the beginning you will likely self-fund your company with some savings. As your capital needs grow you might turn to family and friends to support you in funding your passion.
As your company grows some more and the capital needs grow as well you might turn to Angel investors. These are somewhat wealthy people that perhaps you do not know personally but will take a chance and fund you.
Next Venture Capitalists and Institutional funds like Banks these groups might look at your company but only when you have a sale-able product, you have customers and you have an emerging business. They are generally very picky about the companies they take on because they are representing Other People’s Money (OPM) so they have to be very careful.
For companies that do not fit the mold for formal traditional sources of capital such as Angel investors, Banks or VC’s, Crowdfunding taps into wallets of Family, Friend and more importantly Fans.
Fans are the people that don’t know you personally but like what you are doing and want to support you.
This where Crowdfunding has emerged.
Crowdfunding has been referred to as the democratization of capital meaning it directly connects people with money that are not necessarily wealthy – with people who need it. Crowdfunding taps into people’s spare dollars, pounds or pesos and is reinventing finance 10-$1000 at a time.
On this website your will learn about two main types of Crowdfunding – reward-based Crowdfunding and equity based Crowdfunding. We also have tools, template, e-books and articles that will help you in preparing your company to be an attractive investment target for those wishing to support you.