10 reasons you should pretty much start a rewards Crowdfunding Campaign
Using a rewards crowdfunding campaign as a precursor to an equity crowdfunding campaign is a very logical pathway. The startup company can amass some capital, but more importantly the company can position itself to be very attractive for an equity crowdfunding campaign. The successful rewards campaign has the needed capital to develop a prototype or at the very least a MVP. They have gained PR , market validation, proof of concept, and most importantly a crowd of customers, brand advocates, product development specialist, and the experience and expertise of the crowd.
The Power of Crowdfunding
Crowdfunding has enormous potential to revolutionize the marketing and capital structure of the early stage startup industries, especially technology related industries. If the industry keeps growing at its current rate it could disrupt the angel investor networks and the way they fund early stage investment in startup companies.
These are 10 benefits of a rewards crowdfunding campaign as a precursor to an equity crowdfunding campaign.
1. Access to Capital without giving up equity or accumulating debt
2. Gaining market validation before while saving time and money
3. Product Marketing via social media before a product is even developed
4. Proof of Concept for all future investors and customers
5. Increased Product Testing/Development by crowdsourcing problems
6. Develop early adopter customer base to build brand advocates
7. It will demonstrate traction when doing an equity crowdfunding or going to a bank or an investor with only an idea
8. Its Free PR which builds momentum to capture visibility in traditional media
9. It provides a mechanism for Pre-Orders that are good for cash flow and gauging market response
10. There is no charge if you don’t succeed and you only pay 5-10% if you are successful
When you examine these 10 benefits of a company using rewards crowdfunding before investing the time and capital into an equity crowdfunding campaign you will clearly see the value and benefits of rewards crowdfunding. If you are a new startup with a product to sell and you need to find investment please consider a rewards crowdfunding campaign first.