If you’re considering using a crowdfunding platform, you’ll want to read this post. We learn about the benefits of crowdfunding from the CEO’s of two top funding sites, Indiegogo and Crowdfunder, we’ve compiled the benefits of utilizing this type of platform to simplify the entrepreneurial journey.

 

Market validation prior to development or launch

Does your new product or service fulfill an unmet need that customers are willing to pay for? If your answer is “I don’t know,” a crowdfunding platform may be for you. By connecting with end-users and/or investors at the get-go, entrepreneurs can come to terms with the strength and appeal of their offering before incurring significant investment. Furthermore, the generation of pre-sales prior to launch offers additional fuel to momentum efforts.

 

Early access to investors and future consumers

Whether the entrepreneur is flying solo or is part of a larger organization, crowdfunding allows for a rapid and early connection with the target audience, opening the door to market research opportunities and the building out of an early community of supporters. Chance Barnett of Crowdfunder states, “Great entrepreneurs have an incredible ability to enlist investors in their future vision. To teach them and help them see something new about a market, about a product, and about the world and rally them behind them to help that come true.”

 

Solve issues beyond funding

The Indiegogo platform has plans to widen the scope of services offered to entrepreneurs beyond funding. Solutions to assist with manufacturing, design consulting and distribution may be on the horizon, which will increase both the need and benefit offered to the entrepreneur, who may otherwise need to source these services ad-hoc. Mandelbrot adds, “Our long-term vision is to enable this platform to be one to foster even a greater level of innovation that consumers at large get to participate in by being engaged in this community.” He goes on to add, “We’re going to radically transform the way entrepreneurs to bring products to market.”

 

Learn more by tuning into the “Unconventional Genius” podcast on Libsyn.