Raising Funds on Spark Crowdfunding
If you would like to raise new funds for your business using Equity Crowdfunding please complete the simple form below and we will contact you as soon as possible.
Equity crowdfunding allows companies to raise new funds from accredited investors who are interested in investing in high-potential businesses. Investors receive new shares in the company in anticipation of an appreciation in the value of the shares.
Benefits of equity crowdfunding for Start-ups:
- Provides access to capital. Equity crowdfunding makes it easier than ever to raise money for your start-up without relying on a bank.
- Low Cost. It is a relatively low cost way of raising funds as the company pays only 6% of the funds raised. No fees are paid until the campaign is a success and funds are raised.
- Speed. Campaigns typically run for 5 weeks, which is a much quicker way to raise funds than alternative sources of finance.
- Raises more than just money for your start-up. Your new investors quickly become a group of people dedicated to making your venture successful. Entrepreneurs can rely on their crowd of investors for feedback, comments and ideas, which often helps during the early stages of a venture.
- Builds a network of investors for the future. As your venture moves forward, your investors from your crowdfunding campaign are still involved – and they’re more likely to invest in future ventures.
- Acts as a marketing tool that increases organic visits to your platform. Crowdfunding introduces a venture to the market. By incorporating social media and digital marketing, crowdfunding provides an easy way to direct traffic to your site. Crowdfunding campaigns are easy to share, which makes it easier for your investors to spread the word to their connections.
- Gains credibility with proof of concept. A successful equity crowdfunding campaign can give your venture credibility when approaching angel investors. A crowdfunding campaign’s success shows other investors that your venture has sufficient market validation.
- Introduces prospective customers to your venture and pre-sells your concept. With an equity crowdfunding campaign, your investors become your early-adopters. As you pre-sell your concept, gain insight into user reactions and analyse the market, you’ll be able to adjust your business plan or plan for growth as needed.
- Offers simplicity compared to other forms of investing. In many ways, equity crowdfunding is easier than traditional forms of capital investing. Entrepreneurs simply choose the right crowdfunding platform and then use it to spread their message to potential investors.
- Generates free media exposure. A successful crowdfunding campaign is newsworthy, which attracts media attention. Crowdfunding is a unique industry and can help pick up widespread media coverage, especially as your campaign gains momentum.
Equity crowdfunding has obvious benefits for entrepreneurs looking to jumpstart their venture and raise capital. Spark Crowdfunding can help. Contact us today.