Crowdfunding sites like Kickstarter, Indiegogo and other online crowdfunding sites have become popular in recent years. These sites provide a service for people who want to crowdsource projects and give individuals the opportunity to raise funds for a specific purpose. These websites are great places to start your startup but also great places for seasoned investors looking to take their business from start-up to Series A+ funders with funding levels of $1 million and up. Startup funding is an extremely competitive marketplace and each investor has their own set of challenges. So, how do you find the right accelerator for your company? Here are some different options that may be right for you.
Crowdfunding
Crowdfunding is the act of fundraising through the internet, television or print media. Participants create a campaign that is designed to raise funding for a specific project or cause. Crowdfunding can be done online, through a website, or through a mobile app. The crowdfunding platform you use can determine the type of project you choose. For instance, Indiegogo is for start-ups but also allows for crowdfunded products like life-saving technology. Kickstarter is for fundraising projects that have a backing of multiple investors. And, of course, Kickstarter itself is a crowdfunding website. Crowdfunding is often used in connection with ventures that have a specific qualifying objective such as funding a big campaign that will make a significant impact on society. In other words, a startup may use their crowdfunding campaign to raise funding to fund development of their product. A large public hospital seeking to provide free service to all its patients could use crowdfunding to raise money for a project that will cover the upfront costs of moving to a new location and establishing a new practice.
Indiegogo
For a start-up product or service that has a significant impact on society, Indiegogo is a great place to start. Indiegogo is a crowdsourced project management platform that enables creators and entrepreneurs to crowdsourced their projects. Users can set up campaigns on the site and then receive rewards for their work. In addition to crowdfunding projects, Indiegogo also offers a business model for partnerships with funds from venture capitalists and lucrative Indiegogo salong events.
Start-up funding
Depending on the funding level, various types of funding can be used as a means to get your product or service into production. There are many different types of funding, each with its own purpose. There are many different types of funding available, such as venture capital funding, equity funding,inafund, funding from government and private sources, private equity funding and more.
Series A+ Funding
For projects that have a significant impact on society and will bring a significant amount of value to the community, Series A+ funds are a great option for funding. These are funded investments that bring investors and entrepreneurs together to make larger contributions to the project. There are many different types of funding available for projects that have a significant impact on society. The most common form of funding is government funding. This can come through a foundation or through the US Department of Education.
Multi-Level Funding
For projects that will have a significant impact on society and are of a scale that would require a large investment, multi-level funding is a great option. The funding mechanism used with multi-level funding varies depending on the type of funding being provided. For instance, venture capital funding is used to fund investments in startups. However, other forms of funding can be used as well, including money from governmental or private sources.
KKR (Korea Investment Council) approval
For projects that have a significant impact on society and would require significant financial backers, it may be a good idea to seek KKR (Korea Investment Council) approval first. This is short-term funding that is granted at a concessional interest rate. The interest rate is determined by the amount of equity loaned to the government and is designed to bring it in line with interest rates on longer-term funding. Although it may not receive the full funding that would come with a traditional funding source, KKR approval allows the company to bring their project to the marketplace without the need for a prior investment from an investor.
Summing up
Crowdfunding, like all forms of funding, is a occasional necessity. But for ventures that have a significant impact on society, it can make the difference between a startup and a household name. And for these projects, investing in a crowdfunded version can bring in new investors and allow your business to grow. With a little bit of planning and networking, you can raise the funding you need for your goals while adding new adrenaline to your everyday running shoes.
