What are the Advantages of Equity Crowdfunding?

The equity-based crowdfunding model, which allows capital to be spread to the grassroots, provides an opportunity to announce the project, conduct market research, receive feedback and market approval from potential customers, promote the new product/service or technology, reduce the entrepreneur's risk, and improve the communication network for project owners.

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Advantages of Equity Crowdfunding for Entrepreneurs

Startups that have difficulty in obtaining funding through traditional financing methods can reach potential supporters easily, quickly and without collateral through crowdfunding. In addition, rather than organizing meetings with a limited investor audience and making presentations one by one, crowdfunding eliminates time and space constraints and allows the project to be promoted through digital platforms. Thus, the awareness of the project is created and investors are attracted to the startup.

It allows the entrepreneur to promote his project to a wider audience by taking the power of the masses behind him. Crowdfunding, which offers a solution to the marketing problem, one of the biggest problems of startups, allows the project to be funded with market approval. This market approval also facilitates the startup's future investment rounds. In addition, project supporters become a kind of brand ambassador, contributing to the promotion after the funding phase and increasing the likelihood of success.

The fact that startups can take on very different dimensions with the feedback of those who review the project can also find a place of use in areas that were never thought of before. Some of the other advantages that crowdfunding offers to the entrepreneur include word-of-mouth marketing, expanding their network, reducing the risk of their startup, and ensuring sustainability by launching campaigns again.

Advantages for Audience and Investors

With crowdfunding, anyone can invest in startups and become a partner even with very small amounts. By capitalizing on the rapid growth potential of innovative startups, they can profit from startups in the growth phase. Before crowdfunding, startup investments were only possible with angel investors, but now it is at everyone's fingertips to access a large number of startups without time and space constraints.

Crowdfunding also offers investors and enthusiasts the opportunity to contribute to the development of innovative and technological products (co-creation). Those who review the crowdfunding campaign can leave their feedback as comments. While supporting those who have a dream is a concept that is not far from our culture, digital crowdfunding offers the opportunity to become a partner in this dream, and investors not only gain profit by converting their savings into investment, but also support employment, export and development.

Contribution to the Economy

In addition to the contribution of these savings to the economy, which will circulate more frequently in the economy, it also paves the way for an increase in technological development and added value in the country through the rapid financing of innovative startups. These funded startups contribute to the country's employment level by enabling the development of many business lines and the creation of new markets and areas of expertise. Crowdfunding plays an active role in increasing success stories and improving the level of entrepreneurship by overcoming the barriers to entrepreneurship, ensuring digital transformation and sustainability. It also contributes to the country's financial literacy through the masses' access to startup investing. As a result, crowdfunding offers a digital solution for economic development and social welfare.