Here’s a list of six of the top reasons why entrepreneurs and SME’s should use an equity crowdfunding campaign to raise capital for their business.
1. Be Efficient
By bringing the capitalisation process online and allowing pretty much anyone to invest, equity crowdfunding makes raising capital far more efficient than with more conventional sources. Instead of having 50 meetings with 50 potential investors, you can have one meeting with 10,000.
2. Reward your customers with a chance to buy into your success
Equity crowdfunding’s democratisation of the private equity investment process allows businesses to get their fans and customers to buy into the company, to share in its success, and thus cement their loyalty to the brand.
3. Boost your PR & Marketing through your funding campaign
Equity crowdfunding campaigns are a great way to get exposure for your business, both in the media and among visitors to the platform.
4. Your loyal customers shout the loudest
Once an investor buys equity in your company, they are going to want it to succeed. By building a wide base of investors through equity crowdfunding, you can create an army of brand ambassadors, who will spread the word about your business, help you make strategic connections, and perhaps provide you with follow-on funding later on down the road.
5. Market penetration
A global crowdfunding platform such as Eureeca can serve as an ideal tool for facilitating market expansion. A campaign can be used to raise capital form investors in markets targeted for expansion, thereby planting the seeds for this to become a reality. This is very much linked to the brand ambassadors point mentioned previously.
6. Cash is king
Unlike loans, which require regular interest payments that can sap a business’ resources, equity investments won’t affect your cash flow.