Is Crowdfunding A Viable Alternative For Your Startup?

1268 WordsOct 26, 20156 Pages
Is Crowdfunding a Viable Alternative for Your Startup? There are a million things to consider when starting a business of your own, from the product or service to the officers, to the work flow, and of course, the funding. It’s a great moment when you finally nail down your business model, get your paperwork filed, and get all of your excited people working in the trenches, but none of that happens without dollar signs. Money is a delicate subject when it’s your own, let alone when it’s not, and you have to be extra vigilant at the beginning of a business launch, when there’s so much to remember and it’s so easy to be overwhelmed when you’re allocating your resources. Following the Money You’re not rich. If you were, you wouldn’t be…show more content…
Angels are usually using their own funds, which presents a sizable risk, considering the sheer number of startups that don’t make it past the first five years. • Provided that you find the Angel investment to hold you over until your startup begins to attract interest, the next step in the traditional funding chain is venture capital. This usually takes the form of a fund containing the joint funds of multiple investors, under the professional management of a venture capitalist. By this time, the dollar signs are much bigger, with a floor of somewhere in the neighborhood of a million or two dollars, US, as smaller investments are difficult or impossible for venture capitalists to make at this level. That’s the traditional route. And that’s if you have the timing, luck and interest to line up funding from these three stepping stones. But there is another way to fund startups and other endeavors without necessarily going through the first or second step described above. Crowdfunding is More Than a Shortcut As recently as five or six years ago, crowdfunding was just taking root. There was Indiegogo. There was Kickstarter. There weren’t many others that were established. Today, there are upwards of 500 different crowdfunding sites, a fairly comprehensive list of which is online at
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