TECHNOLOGY
SAVVY CROWDFUNDING & COMMUNITY-EMPOWERED FINTECH STARTUPS
WHEN IT COMES TO RAISING CAPITAL , NOT EVERY FINTECH STARTUP TAKES THE SAME ROUTE . MOST RAISE MONEY THROUGH TRADITIONAL WAYS , WHILE A FEW TURN TO CROWDFUNDING
WRITTEN BY : DERIN CAG
For most startups , raising money is an arduous process involving months of pitching investors . While pitching has its advantages in terms of giving founders time to prepare their pitch presentations , it ' s not for everyone . Some entrepreneurs may be looking to do things faster , and there are others who want to give away products or services , often in place of equity .
According to Michele Schueli , Lecturer of Finance at Università della Svizzera Italiana ( USI ), " Conducting a crowdfunding campaign is especially valuable for B2C fintech companies as it generates strong network effects and enhances the fintech ' s relationship with its customers . The offering participants not only provide capital but are also very likely to convert into customers and become ' true fans ' of the company ' s products . It creates a strong community invested in the company ' s success that can help scale the company faster ."
130 January 2022