Crowdfunding for Startups

Raising capital is a key element for any company’s growth. Larger, established corporations often find it easier to secure investments or additional debt from lenders. However, smaller companies and startups often face significant challenges in this area. This is where crowdfunding proves valuable.

Crowdfunding allows entrepreneurs to raise substantial amounts of money from a wide pool of investors. For example, one humorous Kickstarter project involved an individual seeking to create a new potato salad recipe with a modest goal of $10, but ended up raising over $55,000 from 6,911 backers. Investors can choose from numerous projects and invest as little as $10. Crowdfunding sites typically earn revenue by taking a percentage of the funds raised.

Types of Crowdfunding

• Equity Crowdfunding: This involves raising small amounts from a large group of investors with the goal of increasing capital for startups or new ventures.
• Debt Crowdfunding: Used for working capital financing, project funding, invoice financing, and other financial products that support business growth.

There are also other types of crowdfunding, such as reward-based crowdfunding and donation-based crowdfunding.

Crowdfunding provides a powerful opportunity for both startups and individuals to obtain the financial support needed for the success of their projects.

At Takween Tech, our goal is to offer assistance and advice starting from identifying the best product for your business model, and we accompany you throughout the licensing and development journey until your product is operational, with specially tailored service packages.