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Crowd Funding - what is it?

Date:2017-06-08  Source:Crowd Israel

Funding for projects comes from a multitude of sources ranging from personal assets to individual investors. A recent and successful way to raise money in the new age of technology and social media is through crowd funding. The platform with its large range makes it possible to really emerge as a viable method for funding a startup company or business through small investments. This method of raising capital can be customized to your needs to make it a successful method of getting investors.



Reward or Donation

This is by far the most common type of raising funds for projects. This style of funding allows for flexibility and is where you offer rewards for various levels of donation. These can be perks that are available before released to the public, limited edition merchandise or other items associated with the business seeking to raise enough funding to get off the ground. Other campaigns choose to give their story and hope that they can encourage those reading to contribute to the cause.


The limitations on who can create an account to raise money and how much are pretty lax, allowing individuals to raise money to go on a vacation, get married or more significant like making small investments in some of the Best Israel technology to see a positive return on the investment. The companies that provide these services charge a flat fee or percentage of the proceeds raised in exchange for making the process work.


Process of setting up

Creating an account is a basic step and requires you to establish a goal and set up your incentives if any, that you’re offering to potential investors. It can help to have more rewards in smaller increments to encourage more investors. One large donation is the same amount of money in Israel that numerous small donations equal to. Social media makes the number of connections limitless and also allows you to have more reach when you have the funding to go into operation. You have the power to create your personal pitch about why investors should invest in you as one of those involved in the best Israel technology. You can reach your goal in weeks, days or even hours depending on your outreach.


Benefits of Crowd funding

This method of gaining capital is a smart one for a business trying to establish themselves in the Israel tech zone. It extends your reach beyond simple networking and contacts with investments being able to flow from countries all over the globe. You can also gain fans on social media platforms who will continue to follow your company or product, even if they don’t contribute to your cause financially during this phase. They could be customers in the future. You want to be more well-known as you expand your capabilities to take on more projects.


You can also expand your capabilities of getting large investments by proving that your idea does have the support it needs to be successful based on how much you were able to raise while touting the reasons that you are a force to be reckoned with in the Israel tech zone.



Nothing is without its downfalls and crowd funding is certainly no exception. It may not be as popular in Israel as it is in other countries, which could impact your initial approach and make it longer to raise funds. You might have copycats that try to capitalize on your idea so be sure you have everything you need legally before launching your campaign. It is a full-time job to promote your campaign and take on more projects as you’re responsible for spreading the word across every platform you can from the media to social networking from the casual Facebook to the more professional LinkedIn. You’ll never know how far your idea will reach until you carry it out.


Being Successful

Whether or not you are successful in your attempt to raise money ultimately depends on how much work you’re willing to put into the campaign and how appealing your pitch is. You need to get as many investors as possible without using terminology or concepts that are beyond the knowledge of the average individual. Take your time with the pitch because it will one of the primary factors that determines whether you are successful.





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