Is Crowd Funding Right for Your Startup?

 

 

If I can't convince the VCs, then crowdfunding is "obviously" the answer, right? Maybe... Let's unpack this a bit and help you understand if crowd equity, more recently popularized as "Community Rounds," is right for you.

1000's of companies attempt to raise capital on popular crowd equity platforms like Wefunder, Republic, and Start Engine. Let's look at some stats:

• 23% Don't Get Funded
• 36% raise < $100K
• 28% raise $100K-$500K 
• 6% raise $500K-$1M
• 7% raise $1M+

Raising money from the crowd isn't easy. It's expensive and time-consuming more so than raising from VCs or angels in most cases.

So why do it? Certain startups have strong & engaged communities that believe in the product and want a piece of the company. These startups are best positioned to succeed in raising from the crowd.

But to dive deeper into this topic, Thunder is hosted Jeff Dion from Capital Campaign Quarterback to discuss Community Rounds. Jeff is a former Wefunder employee who is an expert that's helped dozens of companies launch community rounds successfully. Watch the video to learn if crowdfunding is the right step for you.

Your startup's community is a valuable asset. Your initial user base can be your best advisors, friends, and supporters of your rapidly growing product. It may seem crazy that you need to convince random VC investors for money when you have a whole crowd of enthusiastic users that already believe in you.

The good news is that there are ways to fundraise from your user base. This will not only help you secure the funds you need but also strengthen your relationship with your users. If you've built a business around a growing community, this event is for you. You can expect to learn the following: 

 

About the Speaker: Jeff Dion