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 CTO ClearRoadmap

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.

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

Tanya Bourque

April 8th, 2016

Yes. We already have clients and have been working since the day we have launched. I do have marketing material that is prepared.

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

Chicke Fitzgerald

April 8th, 2016

Tanya, there are a lot of posts on FD about crowdfunding.  You should read those discussions.  There are two different kinds of programs.  First are the ones where you give those subscribing something (a product or a service) for investing and they don't have to be accredited investors.  Then the other variety is where you raise serious capital.  

I'm not an expert, but there are some great posts already available that should give you answers.

I do know that you will need an "angle" and something that really sets you apart from your peers. 

After our discussion last week I started thinking about taking your problem solving nature and your current business and putting those together with what we've been seeing on FD the past few weeks.  I think you could add a new dimension to your current business, adding tech co-founder to one of the things that you help people find.  Add talent that is willing to work for equity/revenue share, in addition to the traditional roles that are salary only.  It wouldn't take much work on your existing platform.

Give it some thought!

Irwin Stein Very experienced (40 years) corporate,securities and real estate attorney.

April 8th, 2016

Tanya: The first question that you need to ask and answer is how much money do you need. Crowdfunding is a larger topic than many people realize. . Since you are a staffing firm, I assume that you do not have a product that you can sell now and deliver later. That is called rewards-based crowdfunding. If you are looking for shareholders, that is a very different ballgame. There are a series of regulations that can be complex.  Smaller offerings (under $500,000) are not that difficult, but can be costly upfront because you need the right experts to help you. You should know that most crowdfunded offerings do not raise the money that they seek which is another reason to get the right people.  If you would like to contact me, I would be happy to help. This is what my partner and I do for small and medium sized companies. 

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 

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.