Fundraising

Crowdfunding Yay or Nay?

Tanya Bourque

April 8th, 2016

I started a Staffing firm in March. We are fully operational and we have clients. We will start to see profit in 2-3 months. There are some large staffing projects we want to take on but don't have the capital to take them on. A loan is really not an option. I've thought about crowdfunding. Is there any one place that works better than another? 

Jennifer Jedow Serial Entrepreneur, Published Author, CEO and Founder of Jedow Interactive

April 8th, 2016

Tanya,

I have a ton of experience with crowdfunding and even have a business with Kevin Harrington from the Shark Tank.  This route for funding your business is not easy and I do not recommend to most of my clients.  Since you have a viable business, paying clients and only need funding to get you from a to b, then I recommend a resource like Kabbage (https://www.kabbage.com/) or Street Shares (https://streetshares.com/).  We have used these companies to get the cash we need when we wanted to grow or we simply needed cash to get us into a new deal.  If you are willing to do a loan and know that you can pay the money back, this is a great option for entrepreneurs.  We cannot rely on handouts, and we all know that conventional bank loans are not easy for entrepreneurs.   There are millions of crowdfunding campaigns out there and only about 1-2% surprise us on getting the funding that they need.  I hope you find this recommendation helpful.  Our business is also helping another staffing firm with marketing efforts, you have a valuable business and you need to get the word out there.  Good luck!

LanVy Nguyen Founder & Managing Director at Fashion4Freedom

April 8th, 2016

Unless you're staffing firm is to help an unfortunately group difficult to employ (i.e. left-handed amputee homeless ex-soldiers who also care for homeless dogs), you have to ask yourself why should the crowdfunding community care about your project?

Crowdfunders get something in return...what would would be your return to them?  You have to answer this brutally honest question head on; otherwise, you would waste a lot of time and effort.

Karl Schulmeisters Founder ExStreamVR

April 9th, 2016

Tanya  are you a real person?  You have now posted as being involved in 3 very different startups  with very different questions.

Tanya Bourque

April 9th, 2016

Yes I am a real person. I have two projects I am working on. I don't know where you are getting 3 projects. I have a staffing firm and a software product I am working on. 

Tallat Mahmood Founder at Funding Your Tech Startup

April 11th, 2016

Hi there

Crowdfunding doesn't immediately strike me as the right funding source for your business where an exchange of equity or product bragging rights is usually the norm. 

However, that being said, I know you are already trying it out so would be keen to understand how it goes. 

I would suggest you also try out a number of other sources such as government funding or angel investors. The latter can be extremely helpful and are astute investors who can provide money and open doors. 

Hops this helps. 

Tallat

Karl Schulmeisters Founder ExStreamVR

April 10th, 2016

Sorry for my confusion.


There have been cases of fake trolls before 

Varun Goyal Mobile Apps Developer - iOS / Android at AccuWeather

April 8th, 2016

You guys should start a KickStarter then, and market the story as much as you can. Do send me a link when you do, I would love to take a look at it.

- V

Victoria Cabrera Marketing Coordinator at Patxi's Pizza

April 8th, 2016

There are 65+ conversations on crowdfunding - really important to search before you post. http://members.founderdating.com/discuss/topic/Crowdfunding and then follow the topic so you can be alerted when new discussions are started 

Mark Sim

April 10th, 2016

Because of the Jobs Act, you can get crowdfunding in exchange for equity now.  But only deals with minimum raises of $3M pencil out due to upfront costs.  Kickstarter campaigns aren't ideal for your situation, since you are not selling a product.  I agree with Jennifer Jedow... you should get a short term loan.  Actually, the best option will be to get the financing from your client... make them pre-pay (even at a discount) for their service.  

Varun Goyal Mobile Apps Developer - iOS / Android at AccuWeather

April 8th, 2016

Hello,
I think KickStarter is great when it comes to bootstrapping your projects. But you will need to have a good story and reasoning to support your claim that your company will start generating revenues and what do you aim to give back to the community that supports you.

Do you have such an information prepared?

- V