There will always be the more traditional ways of raising funds to start your business, an interesting concept I recently came across though is Kickstarter. The website is an online platform through which inventors can share their ideas, set funding targets for themselves and deadlines by which they expect to meet this target. If a project is able to meet or exceed its goals, it will receive the full amount of money raised
fees deducted by the website and Amazon, which support the platform).
order to raise the funding, inventors set up a tiered reward system.
For example, an inventor might promise that for every $15 donated,
individuals will get a 20% discount when the product is released and
for every $25 donated, individuals will get the item “free of charge”
(the assumption is that the donation amount is less than what the price
of the product will be when it comes to market). The benefit is that the
inventor raises money, gets feedback and as individuals enjoy a
positive experience with the product, they promote the product by word
Kickstarter is the world’s largest funding platform for creative
projects. The site accepts ideas across disciplines including Art, Comics, Dance, Design, Fashion, Film & Video, Food, Games, Music, Photography, Publishing, Technology and Theater.
As with any idea, Kickstarter does have its disadvantages.
The fees: The website and Amazon.com both deduct fees for facillitating
and processing the transaction. Therefore, you won’t have every last
penny of the money you raise, but you do gain exposure and a transparent
way to showcase your product and raise funding for it.
All or nothing: Kickstarter runs on an all or nothing principle. If
you’re able to raise your target amount of funds by the deadline you
set, then you get the money, if not then you lose it. This is slightly
different from traditional fundraising where even if the amount you
raise is below the target, you do get to keep what you are able to
Gaining support: Some users of the site argue that there is a bias in
terms of which ideas are easily viewable by those who wish to fund
projects. They argue that certain projects have an advantage and
therefore get the funding. I have not evidence to prove or disprove this
point, so the best advice I can give is to do the research and have an
Promotion: To meet your goals it essential that you promote your idea
and encourage people to fund it. Make use of your personal network and
ask them to pass along the information, don’t solely rely on people
stumbling across your profile on the site.
Protecting Your Ideas: This is a public website and there is no
guarantee that there will not be individuals trolling the site for ideas
to copy. So before you post your idea, make sure that you’ve taken the
necessary legal measures (for example, patents and copyrights) to have
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