Building a startup is tough. Getting investors to believe in your venture is even tougher. Sometimes almost impossible.

Banks won’t loan you the money unless you’re a credible business but what if you need the money to build that credibility as a business entity?

Catch 22 situations like this will catch many founders struggling at a roadblock.

Isn’t it nice to have an investment bank for startups?

That’s what entities like MicroVentures strive to do. They conduct due diligence on startups and then, if permitted, helps raise capital from angel investors via its SEC*-approved online platform, giving angel investors the ability to invest small amounts of money in crowdfunding a startup.

If you’re a startup from other regions or continents, check within your country if you have such support in your startup ecosystem.

However, bear in mind that ‘financial institutions’ like these are sometimes, startups themselves to begin with. Take Fundable for instance. They are a software as a service (SaaS) crowdfunding platform, but claim that they’re not a “registered broker-dealer and does not offer investment advice or advise on the raising of capital through securities offerings.”

Unlike banks and MicroVentures, Fundable does not recommend or otherwise suggest that any investor invests in a particular company, or that any group offers securities to a specific investor.

They don’t even negotiate terms and conditions for your startup. That means you’ll need to know that you’re on your own when crowdfunding on that platform, which frankly isn’t a bad thing, because Fundable doesn’t take any form of payment or commission** from your efforts.

What you reap is indeed, what you sowed.

While this is one of the standard issues with raising money strategically on crowdfunding platforms, there are others that will creep up on you as you progresses.

Once you’re set with choosing the right platform, you will have to think about advancing your product to the market.

Know your target market well.

You cannot target everybody with one campaign. That is why it’s crucial for you to build a few buyers’ persona to craft a story for each market. That way, you can target different individuals with various vital messages.

For example, you can’t expect to put up a campaign created for mothers if your target market is a group of single ladies, without children.

Keep in mind, regardless whether it is a motion picture, or favorite hashtags and even e-books distribution; you have to plan a crowdfunding effort, pump in the effort to make it live and let people know your unique story and selling proposition.

Despite garnering a fair share of fans for your business, you’ll encounter those who are not in favor of it. Don’t be discouraged because there will be people who will criticize your product, principles, and business.

Bear in mind when crowdfunding

• Do research and learn from case studies of various companies. Those who succeed and failed as well. Different stories will have different key lessons for your business to learn.
• By learning and having advanced knowledge can help them to handle every situation in a better way without any significant time and resource loss. In below, many important features are given for your interest.
• When crowdfunding, it’s not about putting your products up on the platform and let it run its course. You’ll still need to participate in the forum actively. Get feedback from your prospects or crowdfunders and improve your product or service around their response. In a way, you’re eliciting market validation from your real-time customers.
• Make a concrete strategy and a viable timeline with the milestones so you can gauge a what’s achievable within your business roadmap. Be it three months or one year down the road, having realistic plans will not only prepare your business for the best and worst times but it will also strengthen a positive work culture for your hires, thanks to transparency and reliability.

All in all…

Just enjoy the crowdfunding process and build what you need to.

When you have a strong management in your business, you would then be able to take your startup to the next level.

*SEC is also known as the U.S. Securities and Exchange Commission

**Fundable receives no compensation in connection with the purchase or sale of securities.