BY Himanshu SareenFounder and CEO, Icreon Tech Entrepreneurs must spend extensive time raising funds. There is no way around it. From constant networking to attending conferences and landing clients, there isn’t much time left to spend hunting investors. Crowdfunding platforms luckily reduce the pain of emerging businesses in need of capital.
Kickstarter and Indiegogo are synonymous with the popular rise of crowdfunding. Pebble Watch, an early-mover in the smartwatch space, raised a whopping $10 million. Although an outlier, Pebble is a primary exhibit for what the crowd could do for emerging companies.
Crowdfunding was further legitimized by the JOBS Act, which removed restrictions on small-time investors from funding a business. While the trend has granted significant opportunity for companies just starting out, there is a lack of crowdfunding options for those with traction needing a momentum boost.
Due to the change in policy a gap now exists in the crowdfunding space. It will take an understanding of the complex, real-world processes that provide integrity and confidence for investors to create a digital experience that drives capitalism.
Crowdfunding Those With Traction to Reach the Next Level
Whether it be a disruptive electronics product in the vein of Pebble, a contentious mayoral campaign seeking wider support, or a medical device manufacturer with a fully-functional prototype, crowdfunding has room to mature to attract such ventures.
For ventures under $500,000, Kickstarter is an effective solution. For drug companies creating the next groundbreaking cancer drug, VCs and angels are the route to millions. Yet there are no widely heralded crowdfunding platforms for companies who are out of the startup phase, but still in need of a cash infusion.
As CEO of software development firm Icreon Tech, I know full well that the technical capabilities and web development processes necessary to create such a platform already exist. But the platform that fills this void will need to bridge analogue investment processes with an intuitive software platform built for today’s tech-savvy user.
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