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Equity Crowdfunding - think complementary not alternative!
Raising venture finance in today's economic environment...
In the prevailing economic climate where entrepreneurs and business owners struggle to access finance from the ‘traditional’ streams often used in the past, such as the banks et al, crowdfunding has become viewed and tagged as an ‘alternative’ to traditional funding.
And that’s okay – often it is – there are many examples to be found of businesses turning to the ‘crowd’ to fund their start-up or growth after they have been rejected by traditional funding sources, or have not felt that funds were being offered on a viable basis.
Here at GrowthFunders, we accept this view but also advocate that rather like many means of medicinal support, crowdfunding can be both alternative and complementary.
Why do we hold this view?
It is entirely possible that an entrepreneur can use crowdfunding not only to generate and receive funding for a particular project or growth strategy and that this, in itself, can lend leverage and credence to an application to a ‘traditional’ funding source to garner additional injections or support.
Imagine a scenario where you can, at a given point in your business’ development or diversification, illustrate that you have a proven concept which has appealed to, and received validation from, the marketplace directly.
In such instances, you have a proposal of increased gravitas and factual basis which ought to merit greater consideration from those providing more conventional funding portals.
Worth thinking about isn't it?
Want to learn more? Download our Entrepreneurs guide to online equity crowdfunding here: