Getting anyone to invest in your company, idea, or project was pretty tricky until just the last few years. The stakes were pretty high, and you had to do a lot to impress those potential stakeholders that your idea was worth investing in. They were taking a risk with you, so it had to resonate pretty well with them.
Nowadays, all you need is a good idea, a sound proof of concept – and an account on a crowdfunding site.
Crowdfunding has taken a lot of the pressure off investors by spreading out investments across hundreds (if not thousands) of people, all of which can pledge as much as they want.
Many crowdfunded projects offer benefits depending on what you pledge. For example, a crowdfunded project for a revolutionary coffee maker would provide different items or accessories depending on how much was pledged.
The list of what can be crowdfunded is almost endless, but some cool ones are:
- board games (this riff of the Trolley moral dilemma was one of Kickstarter.com’s most popular game projects ever)
- kitchen gadgets (like this silicone baking sheet divider that promises to make food prep a snap)
- creative foods (like this ‘good for you’ instant ramen)
- clothing that offers truly innovative features (like this jacket with more features than many cars)
If you can dream it and produce it, then you can crowdfund it.
If you want to invest in a crowdfunded project, keep in mind that sometimes it can take months or even years to see completion, so be prepared for a time investment as well before you see the fruits of your labor (so to speak).
You might be thinking, “Hmm, investing in some random project seems pretty risky…”
The great news is this: if the project is canceled or does not meet the specific funding goal they had set, you will not lose any money. Because, as a backer, your contribution doesn’t get processed until the project deadline and the money goal is met.
However, if they meet their funding goals and the project creators decide to take off with the collected money, you don’t have much recourse. I will say that crowdfunding fraud is a rare thing to happen because of the risk of bad press or possible legal action from backers. Even still, you should proceed with caution and research thoroughly before you ever commit to crowdfunding.
If you come across a crowdfunded project that meets your fancy and are interested in backing it, or even if you have a fantastic idea of your own to share with the world, we want to hear from you! Like any other investment, we can chat about the risks – and even if you need crowdfunding on your big idea at all!
Call 513-563-PLAN (7526) or book an appointment online to talk with us about funding your dreams and ideas for the future.
