Launching equity crowdfunding campaigns can be as daunting as it is exciting. Securing funding and proving the mettle of your idea against a test market is, after all, a win-win situation for crowdfunding hopefuls, notwithstanding the effort necessary to make your vision come true.
Aided by new technological developments and a global trend toward decentralisation, equity crowdfunding has risen to be a square alternative to traditional IPO (Initial Public Offering) investments in recent years. A reasonably recent Forbes article notes how venture capitalists are now turning to [equity] crowdfunding to fund their projects, despite it “being a competing money source for their portfolio companies.”
Crowdfunding is pretty simple. Visit a crowdfunding platform, find something you want to invest in, send your money, and wait for results. The difference boils down to what crowdfunding sites you visit. The most common crowdfunding platforms allow you to invest in a project or product in return for special rewards, usually in kind.
The lightbulb, the television, paved roads – our modern world is built on a foundation of good ideas that were realised, then popularised. More importantly, these ideas were funded to be made in the first place.
That is, no money means no innovation.
On paper, crowdfunding campaigns seem easy enough to launch: think up a great idea, put it on a crowdfunding platform – and boom – watch the funding flow into your project’s coffers.
On paper, that is. In the real world, a good amount of crowdfunding campaigns fail. And yes, a good deal of them are fantastic ideas that could have enriched many lives or revolutionized entire industries. How come they failed, you ask? There are a lot of factors to consider, but there are five mistakes that almost all failed crowdfunding campaigns have in common.
The future of investments has arrived.
TFGCROWD has officially launched, and our platform is now open for angel investors, venture capitalists and entrepreneurs alike!
From here forward, we will be using this blog to give you weekly updates, tips, and news that we think would be helpful to our investing and startup community. We’ll also be sharing with you stories about particular projects, and perhaps some observations on the state of the crowdfunding scene from time to time. In any case, we hope you find this section useful.