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14 November 2025

Crowdfunding: How decision-makers gain smart financial strategies

TRANSRUPTION Digital toolbox Automation Crowdfunding and finance Digital transformation eCommerce and digital commerce

Crowdfunding: Smart financial strategies for decision-makers

Modern corporate financing requirements are changing rapidly. Decision-makers and managers are looking for flexible solutions that go beyond traditional bank loans. Crowdfunding offers new perspectives here. This innovative financing method enables companies to raise capital directly from many individual investors. Crowdfunding is becoming increasingly important as a strategic instrument for founders, start-ups and established companies[1].

Why crowdfunding is interesting for modern decision-makers

Traditional financing channels via banks take a long time. Bureaucratic hurdles make raising capital considerably more difficult. Collateral and extensive business plans are required. Crowdfunding offers an attractive alternative to these established methods.[2] Decision-makers retain full control over their projects. They do not have to give up company shares as they would with traditional venture capital.

A craft business needed new production machinery. The bank rejected the loan application. The solution came in the form of crowdfunding. The company presented its project on a financing platform. The machines were paid for within a few weeks. At the same time, new customer relationships were established[2] and the crowd became part of the success.

Another example shows the power of this method particularly clearly. A start-up in the field of sustainable technology opted for crowdfunding. The company not only received capital. It also collected valuable customer feedback during the campaign. Future buyers gave tips on product development.[2] This direct feedback is priceless.

Understanding the different forms of crowdfunding

Not all crowdfunding is the same. There are several variants that are suitable for different purposes.[3] Decision-makers must choose the right form for their project. This is the only way to maximise the benefits.

Reward-based crowdfunding for creatives and innovators

In this variant, supporters receive something in return. This can be the finished product or exclusive benefits.[4] A designer wants to launch a new product line. He presents the idea online. Early supporters receive discounts. At the same time, he validates his business idea on the real market[4].

One catering company used this strategy successfully. The young entrepreneur was planning to open a new branch. He raised the necessary funds via a crowdfunding campaign. Investors received regular discounts and exclusive offers. A loyal community was created[2] and this network became the basis for long-term growth.

Crowdlending: loans from the crowd

Crowdlending works like a peer-to-peer loan.[1] Private lenders grant loans via platforms. The borrower pays interest.[1] This form is suitable for established companies that need liquid funds quickly.

A service provider tested new service offerings using this form of financing. Crowdlending enabled him to invest quickly in test projects. Risks were minimised. Bad investments could be avoided[2].

Equity crowdfunding for growth and expansion

Equity crowdfunding means equity participation.[7] Investors receive shares in the company in proportion to their investment.[7] This variant is suitable for high-growth companies. A broad pool of investors reduces dependence on a few large investors[7].

A technology company used equity crowdfunding to expand its portfolio. It financed the development of new products. The company collected user data before the market launch[2] and the crowd became a research partner. A regional food company built up a close customer relationship using this method. Feedback flowed directly into product development[2].

Strategic advantages of crowdfunding for decision-makers

Crowdfunding offers several specific advantages for managers.[2] Raising capital quickly is the top priority. Projects receive funding flexibly and without complex bureaucracy.[1] The process often only takes weeks instead of months.

Market validation is one of the underestimated benefits. Founders test the market before making large investments[5]: The business idea resonates. People are prepared to spend money on it.[5] This certainty is valuable for all further planning.

Cost savings are another point. Crowdfunding is cheaper than traditional bank financing[11] and incurs fewer fees. Complex credit checks are no longer necessary. The documentation is leaner[11] Small and medium-sized companies benefit in particular.

Community effects and customer loyalty through crowdfunding

Crowdfunding creates more than just capital. It builds a community.[8] People who invest in a project become ambassadors. They tell friends and family about it. Organic marketing is created[8].

An innovative company capitalised on this effect. It launched a crowdfunding campaign for a new product. Supporters shared the campaign on social media. The reach multiplied. At the same time, the founders collected valuable customer feedback[3], which helped with optimisation before the market launch. The subsequent customers were already informed and enthusiastic.

Implementing practical steps for successful crowdfunding

Decision-makers who want to use crowdfunding need to take clear steps[6], starting with intensive planning. A fair and realistic budget is fundamental[6] and must not contain any empty promises. Goals must be achievable in order to justify the trust of the crowd[6].

Transparency is essential in crowdfunding. The crowd wants to know how their money is being used[6] and concrete milestones help with this. A buffer from reserves should be planned[6]. Should unforeseen hurdles arise, the project is not jeopardised.

The reward for the supporters deserves attention. In crowdfunding in the narrower sense, the crowd wants something in return[6], which can be the finished product. Or it can be profit sharing. A personal thank you can also be effective. Communicate these rewards clearly and early on[6].

Choosing the right crowdfunding platform

There are many specialised crowdfunding platforms,[3] each focusing on specific industries or project types,[3] and choosing the right platform can make the difference between success and failure.

An art initiative needed money for a major exhibition project. It chose a platform for creative projects. The local community immediately understood the vision. The project was overfunded. A software company needed funding for an innovative tool. It used a platform for technology projects. Investors there are experienced users with a high budget. The tool was quickly fully financed. Choosing the right platform for crowdfunding means finding the right target group.

Communication and pitch strategy for crowdfunding

A convincing pitch is the centrepiece of any crowdfunding programme.[11] The pitch must be emotional and rational. It explains the project clearly and comprehensibly. Pictures and videos help with this[11].

Founders should tell their personal story. Why is the project important to them? What problem does it solve? What is the vision behind it? People invest in people, not just in ideas. A convincing story is therefore essential for crowdfunding.

Regular updates during the campaign are important. They show that the project is actively progressing. Supporters feel involved. They see that their investment is in good hands. Transparent communication creates trust for crowdfunding.

Specific industries benefit from modern crowdfunding

Not all sectors are equally suitable for crowdfunding.[13] Innovative and unusual ideas stand out in particular.[13] These are easier to find supporters in the crowd.

Artists and creative projects use crowdfunding successfully

Artists often use crowdfunding for projects that would otherwise be difficult to finance.[13] One filmmaker was planning an independent production. Traditional film funding turned the project down. The director used crowdfunding to raise money from film fans. The film was made and won awards. The audience was involved right from the start.

A musician wanted to produce an innovative album. His label showed no interest. Crowdfunding enabled him to remain independent. Fans pre-financed the production. The artist had freedom of design. The result was more authentic than any major label production could have been.

Technology start-ups and product innovations through crowdfunding

Innovators in the technology sector find ideal conditions in crowdfunding.[13] New products and technologies attract attention. Developers receive funding and market validation at the same time[13].

A hardware start-up developed an innovative sensor. Traditional investors were sceptical. The team launched a crowdfunding campaign. The crowd immediately recognised the potential. The target was exceeded. The team also collected pre-orders. The market launch was thus secured.

A software company needed money for the next product phase. It was able to attract early adopters through crowdfunding. These provided feedback for further development. The product improved before it was widely launched. Crowdfunding significantly shortened the development cycle here.

Catering and retail use crowdfunding for expansion

Crowdfunding is also gaining importance in more traditional sectors such as catering.[2] One restaurant operator wanted to expand. Bank loans seemed too expensive. He found a network of supporters through crowdfunding. These became regular customers. The new branch had regular customers from day one. The financing and the customer base developed in parallel.

A retail operator was planning to open a pop-up store. Crowdfunding was particularly helpful here. The project was limited in time. It was a perfect fit for a time-limited campaign. Customers became investors. They memorised the shop and returned later[2].

BEST PRACTICE at the customer (name hidden due to NDA contract) A medium-sized retail company had an innovative product idea. The team wanted to expand into online sales. The necessary infrastructure was expensive. The company used crowdfunding to raise not only capital, but also market insights. The campaign showed which products customers really wanted. This data helped to optimise the online offering. The company got off to a more focussed and successful start than planned.