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  • They will lend their money because they identify

    With the project and want it to go ahead Therefore cultivating relationships with investors is just as important in this type of crowdfunding as in the others Sometimes crowdfunding campaigns complement credits and some banks promote this combination For example the Foundation has its own crowdfunding platform investment crowdfunding Known in English as equity crowdfunding it is another crowdfunding that has a material return In this case investors own a small part of the company they are financing receiving shares or becoming equity partners When the business goes ahead they will receive their share of the profits and will usually be able to participate in decision making.

    This type of crowdfunding is quite widespread in the Anglo Saxon world where there are specialized platforms such as Fundable Advantages and disadvantages of crowdfunding Crowdfunding is executive list a particular form of financing that has its advantages and disadvantages Strengths of crowdfunding The main advantages of crowdfunding as a form of financing are the following It is an effective market study By opting for crowdfunding it is the market itself that finances your business Presenting your idea and seeing how well it is received by your potential target audience will be a good way to find out if there is a demand for your product or service Also as we explained in reward crowdfunding.

    Patrons can become customers quite naturally Contributions are affordable for investors The fact that each patron can decide the amount of their contribution quite freely reduces the risk considerably It has great potential for marketing A good crowdfunding campaign in addition to raising funds will allow you to publicize your brand products and services Most likely your patrons will become your followers on social networks and will sign up for the mailing list to receive your email marketing campaigns Therefore you will have a powerful exit impulse to promote your brand in the market Weak points of crowdfunding Crowdfunding also has its limitations as a form of financing These are the main.​