{"id":5411,"date":"2021-12-27T10:00:57","date_gmt":"2021-12-27T09:00:57","guid":{"rendered":"https:\/\/blog.startups.ch\/en\/?p=5411"},"modified":"2021-08-13T16:01:21","modified_gmt":"2021-08-13T14:01:21","slug":"crowdfunding-as-a-financing-option-for-startups","status":"publish","type":"post","link":"https:\/\/blog.startups.ch\/en\/crowdfunding-as-a-financing-option-for-startups\/","title":{"rendered":"Crowdfunding as a financing option for startups"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\">Crowdfunding is just one of numerous ways for startups to secure funding and reach their financial goals. Instead of relying on one big funder said startups profit from a number of small investments. A well-thought-out crowdfunding strategy is key to success for many startups.<\/h2>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/i1.wp.com\/blog.startups.ch\/wp-content\/uploads\/2021\/05\/pexels-andrea-piacquadio-3932235.jpg?fit=1200%2C800&amp;ssl=1\" alt=\"\"\/><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Crowdfunding as a financing option<\/strong><\/h3>\n\n\n\n<p>Distinctions must be made between the different forms of crowdfunding.\nIn addition to classic crowdfunding, crowdinvesting and crowdlending are most\ncommon. All forms are characterized by some sort of crowd investment.\nAccordingly, the funds realized come from a large number of investors who\nprovide comparatively small amounts of financing. However, the consideration\nthat the supporters receive from the company in question varies depending on\nthe type of crowdfunding.<\/p>\n\n\n\n<ul><li><strong>Classic crowdfunding<\/strong>: In the case of classic\ncrowdfunding, supporters are rewarded with a small non-financial thank-you.<\/li><li><strong>Crowdinvesting<\/strong>: In the case of crowdinvesting,\nsupporters receive shares in the financed company. The big difference to\nconventional investments is the amount of financing provided by the funder. <\/li><li><strong>Crowdlending<\/strong>: In the case of crowdlending, the\nbackers&#8217; funds are repaid at a later date by the company in question. Here,\ntoo, the difference to conventional loans lies in the smaller financing amount.<\/li><\/ul>\n\n\n\n<p>A startup that wants to take advantage of crowdfunding must first decide\non a form of crowdfunding. Subsequently, it is necessary to develop a\ncrowdfunding strategy.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Carful planning of crowdfunding strategy<\/strong><\/h3>\n\n\n\n<p>Startups that want to secure operationally necessary funds through\ncrowdfunding need a clear funding strategy. In addition to the type of\ncrowdfunding, the funding goal and crowdfunding campaign must be determined,\nand an appropriate funding platform must be selected. <\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>1. Define funding goal<\/strong><\/h4>\n\n\n\n<p>The first step in developing a crowdfunding strategy is to define how\nmuch funding is needed. For this purpose, it is necessary to calculate the\ncosts for development, production and marketing of a product or service.\nBecause the outlay is usually higher than expected, an appropriate safety\nmargin should be included in the calculation as well. Once the financing\nrequirements have been determined, the next step is to figure out how the money\nwill be realized. Companies need to decide whether to conduct one or multiple\nrounds of funding and whether to set different investment amounts or allow\ntheir supporters to decide for themselves how much funding they wish to\nprovide.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>2. Plan a crowdfunding campaign<\/strong><\/h4>\n\n\n\n<p>To attract potential investors to their project, startups need to come\nup with a crafty crowdfunding campaign. It&#8217;s all about getting investors\ninterested in the company and its products or services. The crowdfunding\ncampaign should appeal to and convince interested parties. Well thought-out and\nhigh-quality campaign contributions are the key to success. In the face of\nglobalization, startups should also try to attract foreign investors, for\nexample by launching the campaign in different languages.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>3. Choose a crowdfunding platform<\/strong><\/h4>\n\n\n\n<p>Planning the crowdfunding campaign goes hand in hand with choosing one of\nthe numerous crowdfunding platforms. Whether it is Kickstarter, Startnext or\nVisionbakery, care should be taken when choosing the right platform. Startups\nshould pay particular attention to whether a platform follows the &#8220;all-or-nothing\nstrategy,&#8221; as Kickstarter does, for example. In this case, all funds go\nback to the investors if the desired funding goal is not reached. Dividing the\nfunding goal into different stages can remedy this. Furthermore, the startup\nshould pay attention to how high the commission is that the crowdfunding\nplatform charges on the amounts received in order to avoid unpleasant surprises.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Crowdfunding for startups<\/strong><\/h3>\n\n\n\n<p>Crowdfunding is just one of many ways for startups to reach their\nfunding goals. For entrepreneurs who don&#8217;t want to rely on individual big\ninvestors but want a community of backers behind them, crowdfunding could be\njust the thing. <\/p>\n\n\n\n<p>Do you have any innovative business idea you would like to make come\ntrue? Use STARTUPS.CH experts to become self-employed.<\/p>\n\n\n\n<p>Get started as Mompreneur: <a href=\"http:\/\/www.mom-preneur.ch\/en\/home\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">www.mom-preneur.ch\/en\/home<\/a> <\/p>\n\n\n\n<p>Get started as Dadpreneur: <a href=\"http:\/\/www.dad-preneur.ch\/en\/home\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">www.dad-preneur.ch\/en\/home<\/a><\/p>\n\n\n\n<p>Get started as Seniorpreneur: <a href=\"http:\/\/www.senior-preneur.ch\/en\/home\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">www.senior-preneur.ch\/en\/home<\/a><\/p>\n\n\n\n<p>Get started as Youngpreneur: <a rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\" href=\"http:\/\/www.young-preneur.ch\/en\/home\" target=\"_blank\">www.young-preneur.ch\/en\/home<\/a><\/p>\n\n\n\n<a class=\"postButton\" href=\"https:\/\/www.startups.ch\/en\/blog\/\" target=\"_blank\" rel=\"noopener noreferrer\">\u00bb Blog<\/a><a class=\"postButton\" href=\"https:\/\/www.startups.ch\/en\/services\/business-incorporation\" target=\"_blank\" rel=\"noopener noreferrer\">\u00bb Found online<\/a>\n","protected":false},"excerpt":{"rendered":"<p>Crowdfunding is just one of numerous ways for startups to secure funding and reach their financial goals. Instead of relying on one big funder said startups profit from a number of small investments. A well-thought-out crowdfunding strategy is key to success for many startups. Crowdfunding as a financing option Distinctions must be made between the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[287],"tags":[],"jetpack_publicize_connections":[],"aioseo_notices":[],"views":575,"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p54Pb1-1ph","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/blog.startups.ch\/en\/wp-json\/wp\/v2\/posts\/5411"}],"collection":[{"href":"https:\/\/blog.startups.ch\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.startups.ch\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.startups.ch\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.startups.ch\/en\/wp-json\/wp\/v2\/comments?post=5411"}],"version-history":[{"count":2,"href":"https:\/\/blog.startups.ch\/en\/wp-json\/wp\/v2\/posts\/5411\/revisions"}],"predecessor-version":[{"id":5413,"href":"https:\/\/blog.startups.ch\/en\/wp-json\/wp\/v2\/posts\/5411\/revisions\/5413"}],"wp:attachment":[{"href":"https:\/\/blog.startups.ch\/en\/wp-json\/wp\/v2\/media?parent=5411"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.startups.ch\/en\/wp-json\/wp\/v2\/categories?post=5411"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.startups.ch\/en\/wp-json\/wp\/v2\/tags?post=5411"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}