Unknown barely 10 years ago, crowdfunding, or crowdfunding , has become a major financing technique for entrepreneurs. No it’s not a fad and a trend to be in the mainstream. It responds to the needs of a time that highlighted project leaders in order to enable them to succeed thanks to the experience of creators who struggled to obtain funding. Simple and effective, this method is based on the contribution of a more or less modest sum of money by a very large number of investors. But why are crowdfunding platforms so fashionable today?
Create A Real Community Around A Project
Much more than an effective method for raising funds, crowdfunding is an unexpected way for small and medium-sized entrepreneurs to make themselves known and to create a real network around their idea. Because the people who invest in their project are people who believe in their business, and who will surround them, support them in their business and provide them with valuable advice.
In addition, crowdfunding allows VSE and SME managers to build up a large community of potential customers, to whom they can pre-sell products even before their creation and marketing.
Test The Viability Of A Project Even Before Its Launch
The community side of crowdfunding is also a way for entrepreneurs to obtain crucial feedback for the success of their project. Thus, they are able to know if their concept or product will really hit its target, and this prevents them from delving into the unknown. Indeed, if no one is interested in financing a project, it is surely that this project does not meet the expectations of customers and is therefore doomed to failure.
This feedback also allows entrepreneurs to have consumer opinions on a product even before it is launched, and to modify and improve it accordingly. This constitutes a considerable gain in work over the post-launch period of the product.
Finally, the concept of crowdfunding is an incredible marketing tool, which allows entrepreneurs to communicate their ideas and the message of their brand in the huge market with almost unlimited potential that is the web.