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How and where to get Crowdinvesting to fund your Business

Crowdinvesting, a sub-concept of crowdfunding that is also referred to as equity-based crowdfunding, arose in 2011. While in crowdfunding people contribute to support creative projects mainly through small amounts contributed by each participant, crowdinvestors put their money in projects in order to get returns on investment. Crowdinvesting is an interesting form of financing for startups especially as a way of testing a market model or a project. Once the process is successful and accepted by the crowd, it is considered as having a good future in the market.

If you would like crowd investors to fund your business, the best approach would be to launch a crowd investment campaign. Crowd investment platforms are the most reliable places to conduct the campaign. Some examples of crowndinvesting sites include:

How to get investment money for your business depends on several factors. One of the key factors is the needs of your business. For example, there is a great difference between a local retail store seeking to finance a second outlet and a high growth, internet related company seeking a second round of funding. Despite the differences, the following are critical for all businesses seeking funding:

A Business Plan

To secure crowdinvestment for your business, you must convince the investors that you have a viable idea or business that will ultimately give them good returns for their money. To achieve this, you need to have clear objectives and vision for your business. You then need to put this down as your business plan. Depending on the circumstances, you may decide to submit a business plan or a summary memo to the investors. If you choose to submit a summary memo, always remember to have the full business plan ready just in case the investors ask for it.

Involve an Expert

If you have no experience in starting and growing a company, it is advisable to have in your team an expert who has previously managed a startup successfully. This will increase investor confidence. Investors will only put their money in your company if they are confident that it has high chances of success. Remember that investors are interested in getting good returns for the money put into your business; therefore, anything that will increase their confidence in the business is useful.

Show that your Business is Different

Investors will not just fund your business simply because you requested them to do so. Crowdinvestors do not act out of charity. You will need to demonstrate why your business is different from others. This will be particularly difficult for you if you are not inventing anything but creating a business that is similar to some existing ones. However, that is not to say that you cannot distinguish your business from the competition. You only need to demonstrate that although similar businesses exist, yours has a chance of growing because you offer your services better, differently or are targeting an underserved section of the market.

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