Crowdfunding: New opportunities for decision-makers and finances

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Crowdfunding: New opportunities for decision-makers and finances

More and more decision-makers are discovering crowdfunding as an innovative way to realise projects and ideas more quickly and flexibly. Especially at a time when traditional financing methods are often reaching their limits, this form of crowdfunding offers new opportunities[1]. Entrepreneurs, managing directors and start-up founders who rely on the power of the crowd can not only gain capital, but also valuable feedback and commitment.

What is crowdfunding really?

Crowdfunding describes a form of financing in which many people - the so-called crowd - collect small amounts together to realise a project, a company or an innovative idea[3]. In contrast to traditional banks, it is not individual institutions but many people who decide whether a project is realised[1]. The internet plays a central role here because projects can be presented and supported worldwide[3].

Variants of crowdfunding

Not all crowdfunding is the same. There are different models: In classic reward-based crowdfunding, supporters receive something in return, such as a product or an exclusive experience[5]. In crowd investing, investors become co-owners and participate in the company's success[6]. In crowdlending, private individuals grant loans to companies or other private individuals[7].

Advantages of crowdfunding for decision-makers

Crowdfunding has many advantages that go far beyond simply raising capital. Projects receive funds immediately without having to wait for lengthy banking processes[2]. The crowd can become a multiplier and significantly increase the visibility of the company[2]. At the same time, companies gain valuable feedback at an early stage and test the market directly[2].

Transparency is another plus point: investors can see exactly which project they are supporting - unlike with shares[8]. The diversification of capital sources also plays an important role because companies become less dependent on individual investors[6].

Practical examples from the industry

BEST PRACTICE at the customer (name hidden due to NDA contract) An innovative product company from Berlin wanted to launch a sustainable everyday product on the market, but had no access to traditional bank loans. The management launched a crowdfunding campaign, raised 150,000 euros within four weeks and directly gained 1,200 satisfied pre-orders, who are now acting as multipliers in the social network.

A Cologne-based craft business relied on crowdinvesting to build a new production hall. More than 80 private investors took part in the financing because the return prospects were attractive and the management regularly reported transparently.

A Munich-based start-up in the field of renewable energies was able to use crowdfunding to master its market launch. The community not only raised money, but also provided valuable advice on product design.

Successful crowdfunding with transruptions coaching

Many decision-makers and finance managers come to my coaching sessions with questions about crowdfunding. They want to know how to choose the right model, which platforms are suitable and how to successfully communicate their campaign. Clients often report uncertainties about the legal structure or how to address the target group.

In transruptions coaching, I accompany companies and project teams step by step - from concept development to the realisation of crowdfunding. Together, we analyse the market opportunities, develop a clear message and prepare all the legal framework conditions. This makes it possible to attract not only capital, but also a committed community.

A coaching impulse: Using crowdfunding as an additional instrument in the financing mix increases the chances of obtaining capital and at the same time creates an active participation culture in the company.

Crowdfunding in practice: tips and recommendations

Whether start-ups, SMEs or established companies - crowdfunding can be a sensible solution in many situations. For a successful campaign, a realistic objective, a convincing presentation on the platform and active communication on social media are recommended. Companies should provide transparent and regular updates on progress and give honest answers to critical questions.

You can also use crowdfunding for market research: the response shows whether your product is really wanted. Don't be afraid to collect even small amounts - it's the crowd that counts and every supporter is a potential ambassador.

Another tip: Rely on professional support to avoid stumbling blocks. Good business plan coaching or sound legal advice takes the pressure off management and significantly increases the chances of success.

BEST PRACTICE at the customer (name hidden due to NDA contract) A Frankfurt-based consultancy for corporate ventures opted for crowdfunding to establish a new innovation format. The close dialogue with investors not only raised funds, but also established new contacts with potential customers. The campaign was publicised several times on specialist portals and attracted top talent to the company.

A mobility start-up from Hamburg received the funds it needed to build an electric vehicle prototype through crowdfunding. The campaign was a hit with the public and also attracted regional funding.

A family business from the Ruhr region used crowdlending to raise capital for the digitalisation of production - and was thus largely able to do without banks.

Crowdfunding as a long-term strategy

Crowdfunding is more than just a short-term financing solution. It offers the opportunity to build a broad and loyal community that accompanies the company even after the financing phase. Many successful companies use crowdfunding time and again to realise new products or locations.

For example, an energy company from Bavaria regularly relies on crowdfunding to drive forward new sustainability projects. The supporters feel part of the company and are involved in more than just investing.

Service providers and creative minds also benefit from this form of financing because they can test their ideas directly on the market. Crowdfunding is therefore a real alternative to traditional financing instruments.

My analysis

Crowdfunding has established itself as an intelligent addition to the financing mix. For innovative and agile companies in particular, it offers a flexible and transparent way of raising capital and involving the market at an early stage. Decision-makers who use crowdfunding professionally not only benefit from fast liquidity, but also from valuable networks and direct customer feedback.

Anyone who recognises the opportunities and challenges of crowdfunding and uses them strategically will gain a sustainable competitive advantage. I will be happy to accompany you on this path in coaching sessions and develop customised solutions with you.

Further links from the text above:

What is crowdfunding? - crowdfunding.com [1]

Crowdfunding for entrepreneurs: All information - Lexware [3]

What is crowdfunding? Definition and basics - Starting place [5]

Swarm financing explained simply - Bergfürst [9]

For more information and if you have any questions, please contact Contact us or read more blog posts on the topic TRANSRUPTION here.

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