This post’s a reflection of the couple of crowdfunding reads and writes I’ve done during the past couple of weeks. My latest posts featured on YourStory have been on India, currently my home, and a country which has just witnessed a transformational political change. Next up’s an economy’s rejuvenation, led by the creation of #Jobs.
The YourStory article shares ‘10 reasons why India could fall in love with crowdfunding‘ and ‘Five ways investors can make the most of crowdfunding‘ frames some of how entrepreneurs and investors are and can leverage crowdfunding. Most, if not all, of what has been shared makes sense to the global community as well. Here are excerpts from the article:
1. More Jobs For Young India. 9 million Indians enter the job market each year, and this rising number will require the government to prioritize job creation plans, especially if they want the young and restless to be engaged and productive. How better to create jobs than to encourage entrepreneurship! Crowdfunding makes it easier for entrepreneurs to access the early capital they need for their business.
2. Global VCs Track Indian Startups. Stats like 3 out of 4 VC-backed startups fail and 4 out of 5 startups in general tend to fail, do little to increase investor confidence in startups; added to that the fact that most global investors, many US-based, tend to focus on startups in their vicinity. Therefore for Indian startups to grab attention of global VCs they will need to do much more. A successful crowdfunding campaign with some good traction can go a long way in helping investors buy into a startup’s offering.
3. Customer Demand Leads Production. The notion that crowdfunding revolves only around funds can be misleading. While receiving funds may be the ultimate goal, it is the engagement opportunity with potential customers that is one of the biggest value-adds of running a crowdfunding campaign. With the delivery time established in the campaign, the product manufacturers can plan their product as per demand. There are many startups that have successfully planned and sold products with the help of a crowdfunding campaign. Crowdfunding helps maintain a good inventory turnover.
4. Collaborative Teams, The New Mantra. Thought-leaders have been regularly sharing various qualities needed for a startup to succeed — from founders’ drive and passion to having the right team in place and a good working relationship with partners. A successful crowdfunding project also requires the various stakeholders to collaborate for the larger goal. For example a product manufacturing company will need its production, delivery, sales and marketing teams to collaborate seamlessly in order to become successful.
Read 6 more reasons & rest of the article
Another important advantage of crowdfunding that I recently read on Forbes was how the concept could be game-changer to help balance the men-women entrepreneur ratio. An untapped pool of talent, crowdfunding’s ideal for stay-at-home moms – who could be aided through funds and other support to pursue their entrepreneurial dreams. More from 2013 Forbes article
Crowdfunding For Product Pre-sales Enthusiasts [Infographic]
Full article on Yourstory.com