Crowdfunding and Innovation Management

 

 

By Owen Ray, innovation-1

We all know the importance of continuous innovation, and around here we’ve been talking a lot about harnessing the power of the crowd to keep the idea machine running. Crowdsourcing is a great way to generate new ideas and solve tough problems, but it’s only a part of your innovation management process. With all of these ideas and solutions pouring in from the crowd, you’re eventually going to need to pony up some cash to execute on them.

Again, involving the crowd to secure funding can not only nab some dough, but it can be in integral piece of the puzzle that helps bolster your innovation process.

Engage Your Investors

The idea of crowdfunding isn’t just innovative, it’s downright punk rock. Raising money from a crowd of investors — that might get nothing more than a shout-out on Facebook for throwing in $10 — flies in the face of stodgy old banks and shakes off the chains of Wall Street investors, all of which expect you to “make a profit” and “pay them back.” Crowdfunding models do vary, of course. They may be donation, reward, or lending-based investments. And as of September 23rd, the US was able to follow in the UK’s footsteps and allow crowdfunding in exchange for equity. No matter what model you follow, crowdfunding has some advantages over traditional money-getting techniques.

Crowdfunding has strong roots in social media, and it includes some of the general structures of crowdsourcing. Cash is invested by a group of consumers for a return of some sort — whether it is actual money, public recognition, or first dibs on a new product or service. Small amounts of funds generally come from a large number of people in crowdfunding efforts, and that not only makes it easy for people to invest, it can generate a huge buzz for your business.

Think about it. You come up with an idea for the next big whiz-bang gadget, and instead of begging at the bank, you hit the crowd at Kickstarter. All the bank would do is check your credit and say yes or no. When you raise funds with the crowd, you’re essentially getting started on and advertising campaign before your first whozit rolls off the assembly line. As you work on getting people talking about your funding campaign, they are getting to know your company and your product. If you are really doing things right, your campaign gets a hold in social media and goes viral. You’re suddenly generating desire, directly engaging your future customer base, and making the money you need to get going at the same time. What more could you want?

Combine Crowdsourcing with Crowdfunding

Going about leveraging your crowdsourcing and innovation management efforts towards actual funding takes some careful consideration — after all, people are often much more likely to give you their brilliant ideas than their hard-earned cash. Here are a few important things to think about:

  • Make sure your campaign aligns with your innovation management process. If you’re implementing innovation management into your company practices, you’ll need to consider how generating ideas correlates with generating cash. You don’t want the push for financials to trump the development of great ideas, which believe it or not, are sometimes harder to come by than money.
  • Choose the right tools. There are several types of crowdfunding platforms out there, all with their own attitude and characteristics. Examine the types of campaigns that have been successful with each to determine whether or not your company will speak to the platform’s usual audience.
  • Make a better first impression than anyone else. You only get one, right? Well, that means a lot — especially when you’re one of a million other companies asking strangers for money. Be succinct, clear, and transparent in your messaging. Using an eye-catching image or video doesn’t hurt, either.
  • Tell the crowd how you plan to spend their money. It’s all about building trust when you’re in the ever-vulnerable position of asking for funds. As reluctant as the average investor is to back a project, they’ll be doubly so if they think there’s anything shady going on.

Have some crowdfunding tips for us? Share them in the comments.
Read more at http://www.business2community.com/business-innovation/crowdfunding-innovation-management-0635048#Bc3bvMfLcyEfGwtZ.99

Tags: ,

HEADLINE NEWS

The ColumbianCrowdfunding raises $12000 to help Vancouver Safeway workerThe ColumbianCrowdfunding raises $12,000 to help Vancouver Safeway worker. Wayne Hudson was diagnosed with a life-threatening infection and will be hospitalized for at least three months. Popular Cascade Park Safe [...]

Entrepreneur5 Ways to Learn the Nuts and Bolts of CrowdfundingEntrepreneurCrowdfunding is a multibillion dollar worldwide industry that continues to disrupt the traditional world of corporate finance, as well as change the way products go to market. Companies new and old, small and la [...]

Forbes6th Annual Global Crowdfunding Convention Sponsored By ForbesBooksForbesIn 2012, crowdfunding raised $1.7 billion in capital – but last year, total capital raised using crowdfunding reached over $60 billion. This represents a seismic shift in the way that startups, non-profits, [...]

Mirror.co.ukKinky couple set up crowdfunding campaign to raise £50,000 for ...Mirror.co.ukA kinky couple who want to raise money to open a sex club in the heart of a city centre look set to provoke outrage. Business partners Lee Magnetic and ...and more » [...]

Small Business Professor: Use crowdfunding to raise capital for your small businessCircleville HeraldA few of the more popular websites offering crowdfunding services include Kickstarter, Indiegogo and GoFundMe, all of which will walk you through the process of setting up a funding pa [...]

Forbes5 Crowdfunded Side Projects That Became Million-dollar CompaniesForbesCrowdfunding has also given many side projects a fighting chance, when no one else would. Many startups that originally launched on crowdfunding platforms have gone on to build $100 million businesses from the [...]

Fast CompanyHow Crowdfunding Site Patreon Is Helping Artists Build Media EmpiresFast Company(Yam, who built the original version of the site from scratch in three months, is CTO.) Like other crowdfunding platforms, it allows creators to solicit money from their audiences and share upd [...]

Will Crowdfunding Become a Big Deal in India?Knowledge@WhartonCrowdfunding — the practice of raising small amounts of capital from a large number of people to fund new ventures — is finally gaining traction in India. The question is: Will it deliver like it has in other markets? India [...]

5 Things That Can Make or Break Your Online Crowdfunding CampaignHuffPostWhen it comes to hot, new ideas, crowdfunding is one of the fastest-growing methods of raising startup cash. Like an informal brand of ABC's “Shark Tank,” the pages of crowdfunding sites range in everything [...]

BNNChanges to start-up crowdfunding exemption will increase access to capital for BC issuersMarketwired (press release)VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sept. 21, 2017) - The British Columbia Securities Commission (BCSC) today announced improvements to crowdfunding rules tha [...]

CFB Finance

Marketwired

  • Crowdfunding
  • Crowdfund
  • Peer to Peer Lending
  • FinTech
  • Reg A+
  • Reg CF
  • Crowdfunding USA

Press Release

CrowdFund Beat Media

2020fintech.com “The Future of #Blockchain Digital Currency” #bitcoin “Game Changer” 2017 Fintech World Workshop Series twitter.com/BTCTN/status/9…

Live Crowdfunding .tv

What's Next Step in Regulation A+ JOBS ACTS Title IIII :L Interview : Steve Cinelli with Brian Korn Securities and Crowdfunding/Peer-to-Peer Lending Lawyer, Watch more video library | Conference | Interview | Campaign Showcase | Research | Education |