What are the benefits of equity crowdfunding?

Crowdfunding is a unique way of raising money, and entrepreneurs that are successful often enjoy great exposure for their business as a result. Successful campaigns are usually backed by multiple people - often hundreds. The more supporters you have, the more validated your proposition appears. A widely backed campaign and the exposure that gets could bring about many marketing benefits; it’s effectively free PR. 

This method of funding grows your business’s community, and gives you access to a pool of potential brand ambassadors. When you’ve got a big group of people who are invested in you and your business, you’re opening yourself up for a whole future of new ideas and support.

These people can give you feedback - both expert and non-expert guidance on your product or service. Getting any feedback from fresh eyes is invaluable for a business to improve itself. Take your valuation, perhaps you’ve been unrealistic? It can take 1 or 2 people to question it for you to look at your figures and reevaluate. It can also be a good way for you to test the public’s reaction to your product or service. What can/should you change post your successful raise? When investors back your business, they’ll hopefully be promoting your brand through their networks too. They believe in what you do - so why shouldn’t others?

Finally, and not remotely unimportantly, one of the most important benefits is the money. Financing a company is never easy, but crowdfunding allows you the opportunity to appeal to a wide range of people with different levels of financial awareness.

If you're thinking of pursuing a crowdfunding campaign, why not try our quick readiness tool?