Crowdfunding VS Purchase Order Financing
Crowdfunding VS Purchase Order Financing – What suits your business model best?
With crowdfunding giants such as “Kickstarter” and “Indiegogo” the advent of crowdfunding itself has become a critical part of survival for some small businesses. Creating a pool of funds by providing incentives to the small investor that will provide some form of return worth their time and money.
Before diving into crowdfunding, consider if it is the right route for you, as it might not be a practical business option since, oftentimes, it’s an all or nothing scenario. The pros of using crowdfunding include possibly exceeding the fundraising goal, you control the rewards backers receive, not selling equity in your business, the ability to receive feedback from backers early on to improve the product, not needing to pitch your ideas repeatedly, and additionally getting backers to help you promote your product through their personal social media…