Summary: Crowdfunding – a word that brings with it excitement and the lure of billion pound startups.<br> But what’s the real truth behind this phenomenon, and what alternatives do you have; what pitfalls will you face?<br> Curiously, and I didn’t know this, there are different types of crowd funding:<br> <br> * Rewards-based is typically done through Internet fundraising sites where companies offer a product or prize as a reward and generates smaller amounts (from 1,000 to 50, 000 pounds).<br> * Debt-based funding is for more established businesses where a whole bunch of investors are looking for a good return on their money – millions can be raised.<br> * Equity-based is where the general public invests directly and receives equity in the business in return.<br> <br> Make sure to avoid pitfalls when seeking financing for your startup company. Before you seek funding, lay out your business plan and forecast. Make sure there is a market and need for your business. Ask yourself: “Why am I doing this?”<br> Plus, get tools from Startup Direct to avoid making major mistakes!<br> About James:<br> James is the CEO of Startup Direct, which has helped more than 700 startups access funding and mentoring.<br> Challenged Issue: <br> In this podcast, we challenge the issue of securing funding if you are a startup company and how that can be intimidating.<br> James’s Actionable Tips:<br> <br> * Invest time and effort in your business plan and forecast to identify what you need.<br> * Consider all the options available. Banks, crowd funding, grant funding, angel investors – there are so many options out there! Determine which is best for you!<br> * Agree on ownership of business before seeking funding. Avoid fallouts and arguments!<br> <br> Top Quotes:<br> <br> * “There’s quite a few (financing) options out there.”<br> * “The alternative funding space is huge now.”<br> * “There are opportunities there that weren’t there before.”<br> * “I think generally starting up a business has become, in a way, sexy.”<br> * “You don’t have to be in the same city to run a company.”<br> * “The governments realize that startups are the way forward.”<br> * “So many people that have just gotten so much more confidence to do what they want to do, what they believe in.”<br> * “I applaud that passion and desire to succeed, but real life sometimes does kick in.”<br> * “You need to be able to be pretty agile and shift on your feet.”<br> * “If you have a job, keep it – for as long as you can.”<br> * “It is not really a failure if you just change.”<br> <br> Guest Links:<br> <br> * Startup Direct (<a href="http://www.startupdirect.org">http://www.startupdirect.org</a>)<br> * Email (<a href="mailto:apply@startupdirect.org">apply@startupdirect.org</a>) <br> <br> Resources:<br> <br> * Kickstarter (<a href="https://www.kickstarter.com/">https://www.kickstarter.com/</a>)<br> * Indiegogo (<a href="https://www.indiegogo.com/">https://www.indiegogo.com/</a>)<br> * Funding Circle (<a href="https://www.fundingcircle.com">https://www.fundingcircle.com</a>)<br> * Fiverr (<a href="http://www.fiverr.com">fiverr.com</a>)<br> * PeoplePerHour (<a href="http://www.peopleperhour.com/">http://www.peopleperhour.com/</a>)<br> * Google Glass (<a href="http://www.google.com/glass/start/">http://www.google.com/glass/start/</a>)<br> * GrantTree (<a href="http://granttree.co.uk/startup_funding_uk">http://granttree.co.uk/startup_funding_uk</a>)<br> * Horizon 2020 (<a href="http://ec.europa.eu/programmes/horizon2020/">http://ec.europa.eu/programmes/horizon2020/</a>)<br> * The Essential 14–Day Guide to Cutting Your Working Hours and Increasing Your Impact (<a href="http://www.excellence-expected.com/cwh/">http://www.excellence-expected.com/cwh/</a>)<br> <br> Key Timestamps:<br> <br> * 1:07 Challenged issue<br> * 1:19 Introduction guest<br> * 2:03 Startups and funding<br>
