Crowdfunding

How to Choose the Right Crowdfunding Model for Your Business

Former Staff Writer
1 min read

What kind of crowdfunding model is right for you? It depends on the life cycle of your business, according to Sally Outlaw, founder of crowdfunding consulting company Peerbackers.com.

“If your idea is on a napkin, you’re probably not going to do equity-based crowdfunding -- because you’re going to be giving up shares of a company that you don’t even have or know how to value,” said Outlaw at Entrepreneur’s inaugural Entrepreneur 360 conference last fall in New York City.

While most businesses should look to rewards-based crowdfunding in order to first launch, Outlaw believes that it’s possible to raise money throughout your company’s entire life cycle while remaining within the crowdfunding ecosystem. “You can go from $0 to $50 million right now in a raise,” she says.

Check out more in the video above.

Related: 2 New Crowdfunding Pathways That Entrepreneurs Should Keep In Mind

More from Entrepreneur

One-on-one online sessions with our experts can help you start a business, grow your business, build your brand, fundraise and more.
Book Your Session

Are paying too much for business insurance? Do you have critical gaps in your coverage? Trust Entrepreneur to help you find out.
Get Your Quote Now

Whether you are launching or growing a business, we have all the business tools you need to take your business to the next level, in one place.
Enroll Now

Latest on Entrepreneur

My Queue

There are no Videos in your queue.

Click on the Add to next to any video to save to your queue.

There are no Articles in your queue.

Click on the Add to next to any article to save to your queue.

There are no Podcasts in your queue.

Click on the Add to next to any podcast episode to save to your queue.

You're not following any authors.

Click the Follow button on any author page to keep up with the latest content from your favorite authors.