During the past week we have started to develop our marketing model. With our contact person we have agreed about our new schedule. We are no longer working at SEEDS every Friday. We are now meeting each other every two weeks. This is the best option since our contact person is no longer available each Friday. During the week we have mail contact with our contact person.
This week I started working on the first aspect of our model. I discussed with our contact person about their current approach in attracting attention from entrepreneurs. This is done by creating awareness by presenting the main advantages of crowd funding. He told me about the following very important advantages.
It provides access to capital. At an early stage, an entrepreneur may think that outside of their own network they can only raise capital from accredited investors, venture capitalists, and banks. Crowd funding is a great alternative way to fund a venture, and it can be done without giving up equity or accumulating debt. Rewards-based crowd funding platforms allow entrepreneurs to raise funds from the community in exchange for simply giving their tangible products or other relative gifts
It hedges risk. Starting up a company is a very risky and challenging journey. Besides finding sufficient funding, there are always expenses that are impossible to forecast, challenges in market validation, and other people who want a piece of your venture in order to help get it off the ground.
And another really important advantage of crowd funding is:
It serves as a marketing tool. An active crowd funding campaign is a good way to introduce a venture’s overall mission and vision to the market, as it is a free and easy way to reach numerous channels. Many crowd funding platforms incorporate social media mechanisms, making it painless to get referral traffic to your website and other social media pages.