Not only is crowdfunding a fantastic way to raise money to get your project off the ground, it also comes with a range of other benefits too! Here are seven benefits of crowdfunding for your idea.
Over the years, we’ve seen thousands of projects and initiatives get started on Crowdfunder. As experts in the field, we know that crowdfunding campaigns come in all shapes and sizes and it doesn’t matter if you’re looking to raise £200 or £20,000! In the last year alone we’ve seen the crowd come together to help start zero waste initiatives, save riding stables, open community kitchens and much more.
So, we hear you ask, why crowdfund for your project?
1. It’s a low cost way of raising finance and you don’t need to give away any equity or pay the money back
Unlike traditional finance routes, such as taking out bank loans or finding investors, rewards-based crowdfunding is a creative, affordable, and quick way to raise the money you need to grow your project/initiative or get it off the ground! Plus, you don’t need to give away any shares or pay back the money once your project is up and running! You see, people support your project in return for a reward or just because they want to see you succeed.
One of our top tips is to ensure your rewards are enticing as this will encourage more people to pledge their money to your Crowdfunder!
2. We have over £10m of +Extra funding available
Depending what you’re doing and where you’re based, you might be eligible to receive +Extra funding from our partners! In fact, every single day we see projects across the UK get an extra boost towards their idea.
All you have to do is add your project and our clever matchmaker will then ensure that your project is matched with any funds you may be eligible to apply to.
3. It’s a great way to grow your network
Crowdfunding is a fantastic way to grow your community! If your project has a product or service, you can offer these as rewards and create new, and hopefully lifelong, customers and friends. This means you can simultaneously develop a database for your project and raise money!
4. It builds a stronger connection with your community
Unlike other funding routes, crowdfunding means that your community actually becomes part of your journey. It’s a really unique connection that often leads to a lifelong relationship where your supporters become advocates for what you do. It’s this sense of community that really sets crowdfunding apart from loans and grants!
5. It’s a great way to spread awareness for what you’re doing
Crowdfunding can be a real driving force when it comes to awareness. Friends, family, networks, social media, press and PR can all be fantastic ways to build noise around what you’re doing and why you’re doing it.
When your crowdfunding campaign closes, you can keep the wave of awareness going by updating people on your journey.
We often see Crowdfunders get offers of help from the community, with supporters becoming staff members or volunteers once the project is up and running!
6. You can test and validate your idea, minimising risk
It’s no secret that there’s a lot of risk involved when starting a new initiative. What if the community doesn’t understand your mission? What happens if your new product doesn’t sell? What if, what, what if… By crowdfunding for your idea you can test it out before it’s officially launched.
You see, when the community gets behind you and supports your idea with their money, it provides clear validation that they love what you’re doing!
7. It’s fun!
Yes, it’s hard work and comes with its own set of challenges, but overall it’s a really rewarding way to raise money. You get to involve your community, see your project come to life, and build up excitement around what you’re doing. We might be biased, but we really can’t think of anything better!
An extra bonus
When it comes to getting your idea off the ground, crowdfunding is a fantastic way to show investors or loan providers that people are interested in your idea, business, or product.
What are you waiting for? Start crowdfunding for your idea or initiative today! You won’t regret it. Looking for more guidance on your crowdfunding project? Head over to our Knowledge Hub.