Obtaining startup funding is one of the toughest challenges for an entrepreneur. Loans don’t always cover what you need, and not everyone has connections with prospective investors. Online crowdfunding has become an increasingly popular alternative to other funding methods because it allows entrepreneurs to reach a huge pool of potential investors. Whether you need a modest investment to get your company started or you’re looking for more serious capital to take your startup to the next level, the following websites can help you secure the money you need:
Many of the well-known crowdfunding sites allow participants to solicit funding for all kinds of projects and activities. Smallknot takes a different approach, focusing exclusively on independently-owned small businesses. If you start a Smallknot campaign, you can reward people who contribute toward your funding goal; for example, a local candy shop might offer donors a small package of candy if they donate $20 or more to its fundraising campaign. Successful campaigns are charged a 3 percent commission, but no fee is taken if the campaign doesn’t succeed.
SeedInvest has a large network of over 12,000 investors, making it easy for participants to raise the funds they need for their startup. The site has excellent social media integration and a host of advertising tools for startups to promote their campaigns, and it also allows entrepreneurs to have remote meetings with interested investors.
This website isn’t a crowdfunding platform; instead, it’s a matchmaking service for startups and potential investors. Despite the site’s name, their network of investors isn’t restricted to angels: It also includes venture capitalists and something called syndicates, where individuals pool money from other investors and act on the group’s behalf. The great thing about AngelList is that you don’t have to work hard to find investors, because it’s easy for the investors to find you.
If you’re planning to search for equity investors online, EquityNet may be the best place to start. The site’s network includes over 20,000 venture capitalists, angel investors and other potential investors. You can create a profile for your company, share your startup’s business plan and reach the investors who are most likely to be interested in your business.
This website is another platform that makes it easy to connect with potential equity investors. While many competitors charge a percentage-based commission for funds raised through their site, Crowdfunder charges startups a flat monthly fee regardless of the amount of money they raise.
It’s clear that using these online resources can be a powerful way to secure your startup funding, but you have to make sure you meet their requirements before you make the leap. Some crowdfunding and angel investor sites require a business to be U.S.-incorporated before you can work with them. If a corporation is the next step for your business, let the specialists at Inc. Plan (USA) handle the task. Contact us today for more information on our incorporation services.