Thread by @WoleOluyemiCo

Another way to raise funds for your start up business is, crowd funding.

Crowdfunding platforms are set up for individuals to pitch their business ideas or challenges to a community of investors or people willing to support their ideas or cause.

How does it work?

An individual makes a business pitch on the crowdfunding platform, then he or she shares his business model and it's potential for growth.

If the idea is bought by the crowd funders on the platform, they'll make a pledge to support his business model publicly and donate funds respectively.

Pros

- Crowdfunding essentially creates public interest for your business, thus running some free marketing and providing finance for your business at the same time

Crowdfunding eliminates the intricacies involved in placing your business in the hands of an investor or a broker and wields that power to simpletons on the crowdfunding platform

- Has a potential to attract venture-capital investment as the business progresses.

Cons

- The heavy competition inherent in crowdfunding platforms can prove to be difficult if someone or people are pitching the same business idea as yours.

- If your business pitch isn't as solid as your competition, then there is a probability that your business idea will be overlooked or rejected.

Examples of crowdfunding platforms
Kickstarter
Indiegogo
Causes
Patreon
Circle up
Lending Club

#woleoluyemi