Crowdfunding – Alternative Finance Uncovered by Startup Direct
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Summary
Crowdfunding - a word that brings with it excitement and the lure of billion pound startups. But what's the real truth behind this phenomenon, and what alternatives do you have; what pitfalls will you face? Curiously, and I didn't know this, there are different types of crowd funding: * Rewards-based is typically done through Internet fundraising sites where companies offer a product or prize as a reward and generates smaller amounts (from 1,000 to 50, 000 pounds). * Debt-based funding is for more established businesses where a whole bunch of investors are looking for a good return on their money – millions can be raised. * Equity-based is where the general public invests directly and receives equity in the business in return. Make sure to avoid pitfalls when seeking financing for your startup company. Before you seek funding, lay out your business plan and forecast. Make sure there is a market and need for your business. Ask yourself: “Why am I doing this?” Plus, get tools from Startup Direct to avoid making major mistakes! About James: James is the CEO of Startup Direct, which has helped more than 700 startups access funding and mentoring. Challenged Issue: In this podcast, we challenge the issue of securing funding if you are a startup company and how that can be intimidating. James’s Actionable Tips: * Invest time and effort in your business plan and forecast to identify what you need. * Consider all the options available. Banks, crowd funding, grant funding, angel investors – there are so many options out there! Determine which is best for you! * Agree on ownership of business before seeking funding. Avoid fallouts and arguments! Top Quotes: * “There’s quite a few (financing) options out there.” * “The alternative funding space is huge now.” * “There are opportunities there that weren’t there before.” * “I think generally starting up a business has become, in a way, sexy.” * “You don’t have to be in the same city to run a company.” * “The governments realize that startups are the way forward.” * “So many people that have just gotten so much more confidence to do what they want to do, what they believe in.” * “I applaud that passion and desire to succeed, but real life sometimes does kick in.” * “You need to be able to be pretty agile and shift on your feet.” * “If you have a job, keep it – for as long as you can.” * “It is not really a failure if you just change.” Guest Links: * Startup Direct (http://www.startupdirect.org) * Email ([email protected]) Resources: * Kickstarter (https://www.kickstarter.com/) * Indiegogo (https://www.indiegogo.com/) * Funding Circle (https://www.fundingcircle.com) * Fiverr (fiverr.com) * PeoplePerHour (http://www.peopleperhour.com/) * Google Glass (http://www.google.com/glass/start/) * GrantTree (http://granttree.co.uk/startup_funding_uk) * Horizon 2020 (http://ec.europa.eu/programmes/horizon2020/) * The Essential 14–Day Guide to Cutting Your Working Hours and Increasing Your Impact (https://www.excellence-expected.com/cwh/)
First published
06/01/2015
Genres
Duration
30 minutes
Parent Podcast
Build a Better Startup Interviews
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