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Crowd Funding - new concept in raising business capital

Questions related to the distribution, marketing and selling of applications created with NeoBook. (Formally titled: "Making Money with NeoBook")

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Crowd Funding - new concept in raising business capital

Postby dpayer » Thu Sep 22, 2011 1:38 pm

I saw a post on LinkedIn about a website that helps you get funding for
your business concept/project or research.

It assists you in "Crowd Funding" your efforts. This means you don't get
the money to develop your business from a loan but as a gift from
prospective clients who you offer a gift/reward to for the assistance. In
other words, you get many small gifts that do not require a direct
repayment instead of a large loan from the bank that must be repaid.

Your concept has to win people enough to feel that it is worth their while
to give but if you are offering goods or services that are highly valuable
(when you get your business in its final form) they may see the concept of
giving a small amount and getting a premium worth many times that amount
for their effort.

Example:
1) new restaurant seeks crowd funding. They ask for a $10 gift and promise
a $50 gift certificate for the restaurant when it it is ready.
2) a software developer seeks funding for his project. A $20 gift may get
you a version of the product (when done) that is worth $200.

Very interesting concept. Here is a website that helps you promote your
project and they take a small percentage of revenues for their effort.

http://prelaunch.fundageek.com/index.html

I have no connection to them nor do I profit from them. I just thought this was a feasible way to get a kick start for a business concept.

David P.
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Postby andybrock » Thu Sep 22, 2011 3:21 pm

Thanks for sharing this. It could have great potential for Neobookers.

Andy
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