Don't Go It Alone
With the passing of President Obama’s JOBS Act in past April 2012, the word of the day seems to be crowdfunding. While this concept has arguably been around for centuries, it is still formally recognized as a new industry to many consumers, particularly those outside the United States. Crowdfunding is by definition, “the practice of funding a project or venture by raising many small amounts of money from a large number of people, typically via the Internet.”
Upside: Crowdfunding provides another strategy for startups or early stage companies ready to take it to the next level -- such as rolling out a product or service. Before, a business owner was subject to the caprices of individual angel investors or bank loan officers. Now it is possible to pitch a business plan to the masses.
Downside: If you don't have an engaging story to tell, then your crowdfunding bid could be a flop. Sites such as Kickstarter don't collect money until a fundraising goal is reached, so that's still a lot of wasted time that could have been spent doing other things to grow the business.
It could be even worse if you meet your goal but then realize you underestimated how much money you needed. A business risks getting sued if it promises customers products or perks in return for donations, and then fails to deliver. Sites like crowdfunder.com or fundable.com charge fee’s whether you raise money or not, working with any of these sites without an expert that can help you navigate the waters is a waste of time.
How do you take advantage of Crowdfunding?
A smart entrepreneur or business owner should be focused on the growth of his/her business. Crowdfunding requires you to be a master marketer, sales expert, investor relations professional, and SEC compliance expert. Why do some businesses seem to get funded easily while others just languish?
Hiring the right expert is one of the most important decisions you can make when it comes to your campaign. AG Capital is a one stop shop for all your needs. We will guide you from the very beginning. From writing a captivating business plan to your closing documents, our CF experts will help you tell your story and get you funded. AG Capital will walk with you every step of the way until you are fully funded.