If you have a creative business idea but you donΓÇÖt have the capital to start it, you can either apply for venture capital or angel investments or you can build a crowd funding land. What is the main difference between these types of investments? First of all, if you want to raise capital from venture capitalists, you have to pay a great deal of attention to the way in which you write your business plan and your executive summary. Moreover, angels and venture capital firms will only invest in your business after you pitch your business idea in front of them, providing them all sort of data about the market you are addressing to. They will invest money in your company based on an established return rate and on behalf of an amount of shares they will hold in your company.
Click here to find out more about crowd funding landing <= The most important difference provided by the crowd funding formula consists in the profile of the investors. Crowd funding is a technique of raising capital which can easily be understood if combining the idea of venture capital with that of social media. Of course, in order to achieve to raise crowd funds, you need a project that addresses directly to people. That means that your business idea has to be creative and has to have a very precise target audience which you can easily reach on the on-line environment. The most important thing about crowd funding is that this is not just a technique to help you raise money, but it is a technique that makes you raise money from the persons that are directly interested in your product. While obtaining the funds for your business, you also define and contour the market niche that will be interested in your product. But, in order to draw the attention of customers on your product, you have to lead a very powerful marketing campaign. But, as you are struggling to raise capital through this campaign, it is important to keep the prices of advertising as low as possible. Viral marketing techniques and social media sites are vital for a business that is in search of crowd funding. The other very important requirement that differs from the process of raising venture capital funds is that of building an attractive and explicit crowd funding landing website on which to present your project, to sustain discussions with you crowd fund investors and, the most important element, to have a donations button that can be easily seen and that is easy to use. You donΓÇÖt just want people to be interested in your business; you also want them to find it easy to invest in it. Another major difference between these two types of funding is given by the amount of funds that you are likely to raise. As angel investors and venture capitalists generally invest big amounts in promising companies, it is a lot more difficult to raise a big amount in crowd funding. But, as we have seen in the ObamaΓÇÖs campaign, nothing is impossible when you have a good advertising network. That is because the most important element in crowd funding is advertising and PR. Click here to find out more about crowd funding landing <= So, if your business idea is rather creative and needs an amount of capital that is rather achievable through individual donations and if you have a good marketing and PR team, just build your crowd funding landing platform and make sure that the information on your site gets to as many of the persons who may be interested in your business as possible.