Crowdfunding was initially used as a way for artists to fund their projects and engage their audience, even when that audience was relatively small.
Kevin Kelly, author and founding editor of Wired, had the concept for crowdfunding in his essay 1,000 True Fans. Originally written in 2008, he advocated for people to focus on building relationships as a means of building business.
Today, millions of people use crowdfunding platforms to finance their projects, products, and businesses. If you’ve backed a project or creator yourself, explored the possibilities of raising money through crowdfunding, or have never even heard of crowdfunding, this article is for you.
So far in our guide, we’ve covered the most common forms of crowdfunding in chapter one, the benefits of rewards-based and equity-based crowdfunding in chapter two, and how to crowdfund successfully in chapter three.
One chapter this guide is sorely missing (as you might have anticipated given the name of our company) is what equity crowdfunding even is, so let’s get right into the question on everyone’s mind:
What Is Equity Crowdfunding?
Equity crowdfunding allows corporations to raise capital from accredited and even non-accredited investors in exchange for a percentage of equity in the company at an amount and valuation of the company’s choosing.
So how can you guarantee a successful crowdfunding campaign? Although there are no guarantees, what you can do is follow the blueprint of what has been successful many times over and avoid the pitfalls of the unsuccessful campaigns.