Everything about Pozible Crowdfunding
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Everything about Pozible Crowdfunding and How to Raise Money Successfully with Sydney Armani
Today on the Eatt Magazine podcast we discuss Pozible Crowdfunding with Sydney Armani and how to raise money on it.
What is Pozible Crowdfunding?
Pozible Crowdfunding is an Australian based crowdfunding platform that is an online tool for raising money, usually for startups but also for many other purposes and the aim of it is to raise small amounts from a number of people.
Crowdfunding has taken the world by storm with the growth of the internet and has allowed many businesses to succeed in their marketplaces.
What are the different types of Crowdfunding methods on Pozible?
The different types of crowdfunding include:
Reward Based Crowdfunding:
This means that when individuals contribute to your project they will earn some sort of reward from you. For example, many companies provide the first sample of their product for contributors to test and try out.
The pros of reward-based crowdfunding:
The pros are that it provides an incentive for contributors. This may lead to more contributors can lead to you raising more money.
Cons of reward-based crowdfunding:
These include the cost and time and effort required in delivering the reward.
Equity Based Crowdfunding:
Equity-based crowdfunding is when you offer equity in return for support or investment. This type of crowdfunding is for people who want to invest in an early stage startup in which they see potential in. Equity Crowdfunding in Australia got approved by the government for private companies however, there are still some restrictions.
Pros of Equity-Based Crowdfunding:
Minimises overall risk as it relies on a large pool of investors and it is much simpler than other forms of investing.
Cons of Equity-Based Crowdfunding:
These are obvious but you do give up the equity of your company and also you’ve got a much wider audience of people to appease.
Debt Based Crowdfunding:
Debt Based Crowdfunding is basically borrowing money from contributors with the intention of paying it back. From an investors perspective, debt-based crowdfunding is investing in the security of a company where your goal is to loan your money to the company. In return, you get a fixed repayment term and the company pays you interest as well. Basically, you are practically a bank.
Pros of Debt Based Crowdfunding:
For companies, it is quick access to funds and you can also raise capital without giving away part of your company. In addition, you know what the cost basis for the crowdfunding is as you have your set interest rate and the amount of money you want to raise.
Cons of Debt Based Crowdfunding:
The cons of debt-based crowdfunding include you have to keep paying the fixed amount back to the investors and you will not get the same involvement as Equity-based crowdfunding.
How to raise successfully on Pozible?
The number one tip is not just having a good pitch but your story. Emphasise your story, tell it in a way that shows you and your team and how you guys are different and get to really understand your audience and what type of marketing will work for your particular project.
Here are how other successful did it.
About our guest Sydney Armani
Sydney Armani is a long time Silicon Valley entrepreneur, with more than twenty-five years’ experience in the Valley’s community, acting in both an entrepreneurial and investing capacity
He shares his recent vision from the 4th Annual silicon Valley Crowdfunding conference and the growing move to alternative investments.
We gain valuable insights into the future of crowdfunding and the importance of moving to more equitable finance. In addition, we talk about the increasing opportunities for women in crowdfunding. Finally, we talk about the development of ethical investments within the sector.
Sydney is an active speaker and moderator at conferences and plenary sessions on crowd finance, capital markets, secondary liquidity, disruption in banking and a host of other topics.
He has lectured at major universities such as Georgetown and Hult International Business School, while authoring articles for or being interviewed by CNBC, WSJ, INC Magazine, Forbes, Fortune, The Economist.
Sydney is the publisher of CrowdFundBeat.com, an online daily crowdfunding news site in the US, Canada and UK. He is also the founder of Crowdfunding USA Platform an early stage venture funding for startup incubator & accelerator.
http://svcrowdfundbeat.com/crowdfundbeat.com
Join us on our other crowdfunding podcasts:
We will also have more crowdfunding podcasts available in the near future.
