Crowdfunding is a very lucrative tool to raise money for Startups but just because it is a hot topic should you directly dive into crowdfunding for your startup?
Should you directly jump into Crowdfunding for your Startup?? The short answer is NO. Why??
Because it takes time to raise money in crowdfunding. Just because it is a hot topic in raising money for your startup, it does not mean that it is all rainbows and butterflies. The amount of time taken and the benefits to raise via Crowdfunding vs raising money from VC’s is exponentially different.
If you get investments from VC’s you can raise huge money in short time and connect with influential people from their network. Yes, the VC’s will take a certain percentage of your company though.
Via crowdfunding, you will have to work your ass off to pitch the general public about your product but you get to keep 100% of your company. So, choose to crowdfund only if you have been denied by investors.
Why should you as a founder want to Crowdfund when the investors turned you down?
Because sometimes the expert get it wrong and YES you can’t quit without having a say from your potential audience.
Grasruts, is a crowdfunding platform for Nepal. If you like to learn more about what is crowdfunding, or how can it be helpful to you, feel free to contact us at contact[at]grasruts.com