Is Crowdfunding for me?
Is Crowdfunding for me?
Though an early-stage company should prioritize bootstrapping as its means of financial sustenance, for some, this is not always a viable option. Converting some ideas into businesses can be capital-intensive, particularly those dependent on expensive production and R&D.
A crucial step many entrepreneurs are skipping is the market validation stage. When you’re low on capital, you become more efficient with resources and utilize all tools at your disposal to make the business succeed. When you’re still figuring out the vision of the company, building the prototype and testing the market need, the last thing you need is external pressure and exertion of control. During the early stages of a company, utilizing resources efficiently is vital for survival and raising money from investors or applying for grants can become a huge distraction.
This is why entrepreneurs are exploring alternative finance models – in 2015 the crowdfunding market grew to £3.2 billion (NESTA). Crowdfunding brings together a group of passionate supporters to fund a campaign that they believe in bringing to life. Launching a rewards-based crowdfunding involves putting together a 30-day online campaign comprising a video pitch, high-quality product shots, details on traction, business model and press. The campaign is used to secure pre-orders and sales to assess the demand for the product. Running a campaign with a deadline means you have a chance to create urgency around your product and/or service to sell your idea to customers. If you meet your funding goal, you get to turn your idea into a business and if you’re unable to meet your target, you now have direct feedback from the market giving you the opportunity to refine and launch again.
If you can answer yes to any of the following questions, then rewards-based crowdfunding is for you:
No fear of equity dilution or interest on loans, keep what you make at no risk.
UpEffect works very much like an investor, we provide a hands-on support process to ensure our social good companies are optimised for success.
We help you put together rewards optimised for sale.
We hustle with our campaigns and work as an extension of your team. If for some reason the market does not agree, we’ll help you tweak your campaign.
Gain backers who become champions of your story and share it with their circles. We believe that crowdfunding is deeply rooted in community building as compelling stories and experiences sow the seeds for an idea that turns into a movement.
Safe and secure
We leave the handling of financial information to the experts that offer security and protection plans. UpEffect stores no financial data. By minimising risk, it also makes backers more likely to pledge.
As every individual deserves a champion, especially one set out to positively change the world, we invite the public to be backers of our campaigns.
When you back a campaign, you are helping an impact idea come to life. In return, you get to see the social impact your support contributes to as well as benefit from rewards offered by the campaign.
All campaigns on UpEffect are vetted and go through a review process so that we can ensure our businesses are equipped to implement the campaign they are asking money for. We look for the following in all of our campaigns: