Top 5 Reasons to Raise Money through Crowdfunding

RoC’s Top 5 Reasons to Raise Money through Crowdfunding!
- @RoCBans

1. CF: It’s easy! (And…might I add, RoC makes it EASIER!)

  • Crowdfunding, in all its glory, is partially based on making the capital raising process simpler. In the entrepreneurial world, there are billions of ideas, millions of good ones, thousands of really good ones, hundreds of revolutionary ones; yet VERY few of these make it past the ideation stage. Why? Because the idea ends up getting tied down to investors and how to raise the funds to get this idea off the ground. NOW, though in its early stages, Crowdfunding will provide the legal medium through which raising capital for your startup/idea will provide equity to interested investors; which WILL include everyone from the first time investor to the big wig Venture Capitalists.

2. CF Provides more time for your startup to FOCUS

  • Focus on building your business, idea, and improving, NOT funding! Another reason to use CF as a source of funding is simply because of the bottom line: time savings. The JOBS act has made it SO much easier to raise funds, since it is now legal to do so through social media channels. This allows for less time traveling to VC firms and conferences, hounding Angels, or going to big investor meetings, which can feel like a waste of time. With this time savings, you can focus on building the business and leave the capital raising process to experts like RoC. Everyone’s Invested…including us!

3. CF is an ADDITIONAL source of funding

  • This is an important point, because we want to be clear that Crowdfunding does NOT make other more traditional methods of capital raising inferior; what it DOES do is provide another channel to raise funding for equity. Crowdfunding should be thought of as an additional way to raise money with ease vs. the SOLE way to raise capital for your startup. Investment can come from anywhere and we believe crowdfunding is a more direct way to create a broader (and quicker) reach while still targeting those with a genuine interest in your business.

4. CF Creates and Attracts GENUINE Interest

  • One of the MOST interesting facets of Crowdfunding (personally), is the ability to attract people who are genuinely interested in your idea and therefore interested in the prosperity of your startup. Attracting interest is half the battle, investing is the next step. Crowdfunding platforms, such as RoC, provide the means for communication between investors and startups to continue building interest and give both startups/investors a direct link to exchange feedback and build relationships. It’s important to have investors who are truly invested in your idea, both mentally/emotionally AND monetarily, which brings me to my final reason for raising capital through CF!

5. CF Builds a Following

  • Since crowdsourcing starts with genuinely interested investors, it enables your startup to build a following with these highly interested people and their personal networks, while expanding your own network. As a startup, the importance of building a brand with key influencers can NOT be underplayed- and crowdfunding allows just that- a way to more organically build awareness and key influencers for your brand. Where else can someone passionate about your idea go as far as to purchase an equity stake in your business? That’s one of the key indicators that there is truly passion for your startup’s idea and has the potential to create a solid following.

Startups. Crowdfunding. Simple. – RoC

What do YOU think??

Let us know!

@RoCSpeaks @RoCBans

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