Crowdfunding 101: How to raise funds with crowdfunding - X-Forces Enterprise
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Crowdfunding 101: How to raise funds with crowdfunding


For many people the term 'crowdfunding' conjures up images of campaigns and causes, but it’s also a highly effective system used by a great many start-ups and ambitious small businesses. In fact, the global crowdfunding market in 2021 was valued at $12.27 billion and is forecast to double by 2027...

Crowdfunding is changing the way small businesses raise money. Where once institutions were the only route to business growth, today crowdfunding offers aspiring entrepreneurs the chance to raise funding from ordinary individuals who believe in the values and appreciate the benefits of a venture.

Such investments can be charitable, with investors looking for little if any return, or given in return for a stake in the business.

Our friends at Barclays Eagle Labs, with whom we've teamed up to create a brand-new Masterclass programme focused on Crowdfunding, have produced a brilliant guide which will hopefully help you decide if this is a journey you’re going to take.

The benefits of crowdfunding

Crowdfunding has a range of advantages and perks - from reaching a wider investing pool to more flexible options, it’s unsurprising why so many businesses have chosen to go down the crowdfunding route. Below are the benefits of using crowdfunding, rather than traditional forms of raising capital.

The main benefit of a crowdfunding campaign is that you can reach a multitude of different people, that are more likely to be interested in your project. Investors, friends and families can also share your fundraising campaign, making it easier to get noticed and interact with many people.

In the same vein, crowdfunding is a great marketing technique too. You can share and promote your campaign in many different ways, and gain a loyal following and customer base before your venture even begins.

Creating a crowdfunding campaign means that you can create a presentation that reflects just how much you have to offer. Many companies don’t get to research their own business in this way, which proves to be a big benefit to you and your enterprise.

With crowdfunding, you have one centralised platform that you can funnel all of your investors towards. This makes everything easily comprehensible, which is great for start-ups that value accessibility and simplicity.

Lastly, the psychological benefits of gaining validation from multiple different people, from different backgrounds, will only improve your confidence. In turn, you will be better able to sell how amazing your concept is, and win more people over.

One of the main concerns regarding crowdfunding often falls with the fact that many don’t feel that there will be the same kind of flexibility as with other funding options. This isn’t true. Crowdfunding comes in a variety of different forms; which one you choose depends on the product or service you offer, and your personal goals.

To learn more about the different types of crowdfunding, read the full article on the Barclays Eagle Labs website, then register for your free place on our 19th April Masterclass

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