MNvest.org is proud to have MNvest portal, MNStarter, as a guest contributor for our August issue!
Before we can dive into the steps to follow when producing a successful crowdfunding campaign, we need to fully understand what crowdfunding is and why it is so beneficial for businesses and the economy. By definition, crowdfunding is “the practice of funding a project or venture by raising many small amounts of money from a large number of people, typically via the Internet.” Through crowdfunding, a community of like-minded individuals can fund projects or invest in a business to connect with a greater purpose in a campaign.
WHO’S IT FOR?
One common misconception is that crowdfunding is just useful for small businesses and startups. This is definitely untrue! While crowdfunding creates a funding opportunity that certain smaller businesses may not have received in the traditional way, it also is a great outlet for more established companies.
Now that we (hopefully) understand crowdfunding, here is a list of steps to follow when trying to launch your campaign. By following these steps, you can maximize your investors and funding.
MNvest is a Minnesota law permitting investment crowdfunding, a new way to fund Minnesota's growing businesses. Similar to reward-based crowdfunding sites (like Kickstarter), MNvest enables Minnesota businesses to legally advertise investment opportunities to all Minnesota residents.