It is my experience that…crowdfunding sites are the best route for companies looking to launch a product or service.
Austin Glenn, CEO of Jamboo Headphones is not a social entrepreneur, but he does describe all the reasons that he used a crowdfunding platform to raise capital for his startup. His article is superb reading for anyone looking for financing and start up capital, including social entrepreneurs.
From a policy perspective, he also mentions that under the newly implemented Jobs Act in the Unites States, crowdfunding platforms will have the option to give their users the ability to offer equity in return for monetary donations as well. We are some distance away from this possibility in Canada, but it is inevitable that social venture capitalists in our country will use crowdfunding platforms to find new business investment opportunities, even if the financing “deal” then needs to be brokered privately.
Another gem in Glenn’s article is that he indicates that 20% of his more than 200 new supporters in the first two weeks were from outside the country where the product was being launched. This is hopeful news for Canadian entrepreneurs, who occasionally feel that there is more investment capital available in other countries.