Yes, crowdfunding might be a feasible and streamlining alternative to inject cash into most projects. But are you aware that crowdfunding is the perfect option for some business types and projects to source for funding?
In this ever-dynamic digitization era, crowdfunding has emerged to be a top empowering development for many businesses. Aspiring entrepreneurs can share their ideas through the general public and technology, consequently pooling investments to fund their projects.
Many startups and wildly successful companies found their footing through crowdfunding campaigns.
Veronica Mars, the mystery drama television series, was put on a hiatus and ultimately canceled. Luckily, through a successful crowdfunding campaign on the Kickstarter platform, dedicated fans raised more than $5 million to make a movie adaptation of Veronica Mars. This is just a detailed overview of a particular project that found enormous success through crowdfunding. Pebble wearable devices and Oculus virtual headsets are other projects that became million-dollar companies through crowdfunding.
Again, specific business models have struck gold through a successful crowdfunding campaign. In this masterpiece, we will pinpoint businesses that can scale their innovations or projects through crowdfunding.
Top Business Types That Are Perfect For Crowdfunding
1. Real Estate
Real estate crowdfunding might be a relatively new entry in the crowdfunding realm, yet it’s gaining popularity rapidly. Once considered a path only individuals with deep pockets could venture, real estate is progressively opening its doors to less affluent individuals with the compelling urge to venture into the industry.
Basically, individuals can reach out to the public and ask them to contribute funds to acquire apartment buildings, land, or any real estate properties. In return, intrigued investors contribute to the cause, primarily to obtain equity or, in other cases, in the form of debt.
There are various real estate crowdfunding platforms, and interested parties should scrutinize the process, measures, and standards of a potential platform.
As mentioned, real estate crowdfunding is gaining ground for real estate developers since they can acquire funds to invest in real estate assets. Also, they can take part in realty with fewer risks than they would be funding a project on their own. Even better, potential investors benefit from a successful campaign by getting higher return rates on their money.
2. Independent Books
Self-publishers, whether in children’s stories, book, full-blown novels, and in general, the creative set can test their concept and find a supportive audience even before editing their first words through crowdfunding.
Publishing a book independently can be a pretty expensive process, right from designing covers, professional editing services, formatting, and up to marketing the finished product.
However, authors can worry less about the funds needed to showcase their work through several crowdfunding platforms. In fact, the economics of crowdfunding work particularly well for book publishing. Kickstarter and Indiegogo, the most prevalent crowdfunding platforms, are very active in the literary group.
Upon a successful campaign, authors can acquire a pre-order, attract book sales and obtain a traditional publishing contract. Not to forget, crowdfunding platforms offer authors and their work credibility.
3. Local Service Businesses
For businesses that support your community area, be it a barbershop, grocery store, cyber cafe, one of the most effective strategies to gauge support from your prospective clientele is asking for their support from the first stage. Helping you to get started. You will not only be asking for funds for your new business, but also you can measure the interests among your community members and build a customer base before launching the project.
Local Lift platform allows entrepreneurs to raise funds from their customer base and the community at large.
4. Authentic Tech Gadgets
Crowdfunding platforms are ideal places to launch tech gadgets. In Layman’s terms, tech gadgets are any devices that integrate technology to function. Ultra-thin smartwatches, smartphones, PCs, and so on.
Innovators looking to get cash for their latest and greatest tech product can acquire funding from an intrigued crowd. It’s even better than wealthy investors who don’t have a doting for the product rather than caring how many units it will sell in a short time. Individuals with tech gadgets that illustrate a working prototype and offer unique features should prioritize crowdfunding sites such as Crowd Supply as a starting point for their launch.
5. Kitchen Gadgets and Accessories
A rule of thumb for most crowdfunding sites is that the most straightforward ideas tend to have successful campaigns. Kickstarter has sourced some of the most innovative and coolest kitchen gadgets that are a life-savor. For instance, the ChopBox, a smart cutting board that replaces five kitchen tools in our kitchens.
Crowdfunding is a perfect alternative and effective option for home cooks looking to market specialized gadgets that haven’t made their way to mainstream retailers.
6. Unique Home Devices
Again, unique and innovative products/services thrive on crowdfunding sites. In rare cases, if none, will you ever hear of a ‘’anything boring’’ that emerged successful through a crowdfunding campaign.
Unique and often quickie home inventions that solve everyday home problems have had tremendous success in significant crowdfunding columns. For example, BugASalt, the fly-killing salt shotgun, was a highly funded campaign in Indiegogo. As you can imagine, individuals behind innovative home devices can pitch out to backers and acquire the funding to get to the next level.