A Guide to Crowdfunding for Business

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Editor’s note: Lantern by SoFi seeks to provide content that is objective, independent and accurate. Writers are separate from our business operation and do not receive direct compensation from advertisers or partners. Read more about our Editorial Guidelines and How We Make Money.
What Can Crowdfunding Be Used for?
Popular Crowdfunding Sites for Small Businesses
How Crowdfunding for Small Business Works
Creating the campaign Marketing the campaign Raising money with the intention of reaching the target goal. Some platforms require crowdfunders to reach their goal in order to keep any of the money raised, others do not.
Creating the Campaign
Marketing the Campaign
Spreading the word on your company’s website and social media channels. Using promoted posts on social media. Doing interviews for online blogs, podcasts, or other media. Attending conventions, business fairs, or local community events. Distributing flyers, pamphlets, or other promotional materials in your community.
Reaching the Target Goal
Different Types of Crowdfunding
Equity Crowdfunding
Donation Crowdfunding
Reward-Based Crowdfunding
Loan Crowdfunding
Do You Pay Back Crowdfunding Money?
Pros and Cons of Crowdfunding for Small Businesses
Pros of Crowdfunding for Small Businesses
Cons of Crowdfunding for Small Businesses
Alternatives to Crowdfunding
About the Author
Lauren Ward is a personal finance expert with nearly a decade of experience writing online content. Her work has appeared on websites such as MSN, Time, and Bankrate. Lauren writes on a variety of personal finance topics for SoFi, including credit and banking.
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