It is a worldwide phenomenon, which has existed for about a decade, but that has taken hold with increasing numbers only in recent years: collective financing, which with small economic support, allows anyone to participate in various projects.
Let's start by making clear, on the different kind of existing crowdfunding, which today are 4.
• donation: it is a very limited phenomenon, mainly linked to the ONLUS realities that can receive donations making themselves known to an extended public. We talk about donation precisely because the project's advocate receives nothing in return, if not the pleasure of having contributed to it.
o reward: this is the most developed one in terms of the number of platforms that make it. In the face of an investment in the proposed project, the platform recognizes a reward, commensurate with the investment itself.
• peer to peer lending: a group of natural or legal persons who decide to lend each other funds for the purpose of creating a project together, identifying an interest rate for the loan itself. Son of the crisis, this crowdfunding system is experiencing a period of great development, where bank credit has become very complicated to obtain.
• equity: the most interesting of the four provides for the possibility of investing money in unlisted companies in exchange of a part of the company's capital, namely equity. It is an expression of entrepreneurship above all young, which often combines enthusiasm with a great spirit of innovation, even if it does not have the necessary capital. The fact that this method of financing really works proves the enlargement to the real estate sector, with the possibility of raising funds for the realization of construction projects. The activity of the equity crowdfunding platforms is regulated directly by Consob, in Italy, for the tranquility of both those who present a project and those who decide to invest in it.
Presenting a project to a crowdfunding platform is not in itself complicated, but without adequate preparation one can risk that the project does not get the desired investment.
So let's see what to do to get prepared:
• Clear ideas: as if to say, if you have not made it clear you will never convince anyone. Clarify any doubts about your project: what you want to achieve, how much time, and what you intend to communicate to your possible supporters.
• The right platform for the right project: these are platforms on the web, so an online search is sufficient to find the reference ones for each type of crowdfunding, and then find the platform that best meets your needs. based on the type of project to be presented.
• A nice business plan: it may seem obvious, but a clear, exhaustive business plan, accompanied by a financial economic plan, is absolutely essential to ask for an economic investment of any kind. Especially in crowdfunding, where the documentation is the only thing that the possible supporter of the project can have available to choose whether to proceed or not. The more information there is, the better it is naturally: the current and prospective market situation, rather than a lunge on the SWAT analisys.
An effective presentation: it is about cohabiting someone who maybe does not know you to give you money. Present yourself and your project as well as possible, using videos and photos, everything that can represent you and give a beautiful image of you.
• Supporting documentation: in case of it is a start-up that has already started its activity, it will be essential to present a trend of the last years and the specific description of the business plan that it intends to achieve with the capital increase. In each case, any additional information will be well considered by the possible investor.
• Advertising: if it is true that each platform uses its own channels to promote the projects it is carrying out, any additional advertising is welcome. In the internet age, given that you are proposing on a web platform, free access to social channels, facebook and linkedin in the first place. So you can tell your contacts that you are proposing your project for a fundraising and, since often the adhesions do not depend only on purely economic criteria but you decide "belly", let yourself be felt without shame.
If you do everything right, and of course if your project is innovative and worthwhile, the results will come. There are countless successful crowdfunding cases, and in the case of equity crowdfunding, projects that exceed the required investment.