Here's Why Indian Startups Are Raising Funds via Crowdfunding

Indian Startups - Raising Funds via Crowdfunding

The crowdfunding concept is now popular in India. It is known as a pool of resources by some people for a similar objective. With this goal, common people collect funds for your idea application, a cause, startup or project.

In India, startups require a widely known and the best crowdfunding platform like Ketto that not just helps individuals or startups for introducing a product but also to examine the product’s acceptance in the market.

So, let’s see how crowdfunding websites India work and how they can be advantageous for you!

Business Models of Top Crowdfunding Sites

1. Lending model – People loan money to a project with the term of paying back.

2. Donation model – People make financial contributions to a project having no expectation of financial advantages.

3. Investment model – Investor gets an equity investment in the project.

4. Reward-based crowdfunding – People contribute to your campaign and you offer a reward in return. However, equity can’t be a reward.

Now, let’s discuss why Indian startups are relying on crowdfunding!

Benefits of Crowdfunding for Startups

1. It reduces risks

Running a startup fundraising campaign reduces all risks of startup operations and provides a good experience.

2. It saves share

Crowdfunding helps fund a business venture without letting you lose any share or accumulating debt.

3. It works as a marketing tool

An active startup fundraising campaign introduces a business’s object and goal to the market, as it’s a simple and free way for reaching many channels.

4. It proves the concept

Convincing yourself and investors that your business has been approved at an early phase is difficult. But crowdfunding makes it possible because people start knowing your product and respond.

5. It helps analyze ideas

With the help of crowdfunding, entrepreneurs can involve the crowd and get ideas, comments, and feedback.

6. It introduces potential loyal clients

Prospect clients view your campaign and contribute to it. These people are loyal and important for your business in the long run.

7. It’s easier than traditional applications

A loan application is more difficult for every entrepreneur, particularly during the company’s early phases.

8. It is free PR

Successful campaigns allure prospective investment from traditional platforms and attention from media outlets. After all, reporters always seek success stories.

9. It gives pre-selling opportunity

Running a crowdfunding campaign helps an entrepreneur pre-sell his idea or product that is not promoted yet.

10. It is free to launch

Launching a crowdfunding campaign on a few platforms like Ketto is totally free. You will basically provide a nominal fee when you collect funds.

How to Raise Funds for Startup in India

• Select the right crowdfunding platform as a wrong choice can let your project fail. A platform like Ketto will help you shape your project for your audience.

• Make a short and simple crowdfunding video to show your product, your office, your earlier work to grow trust for the contributor.

• Write a detailed project description.

• Give a special reward to the contributors in return.

• Use PR for good reach and engagement.

• Use social platforms to make your project viral so it can reach your target audience.

Closure

Ketto is the best crowdfunding platform for Indian startups that need funds without losing equity. Contact us today to reap the benefits of our platform!