{"id":7763,"date":"2024-01-05T17:26:08","date_gmt":"2024-01-05T17:26:08","guid":{"rendered":"https:\/\/www.turbocrowd.it\/?p=7763"},"modified":"2024-10-12T14:19:47","modified_gmt":"2024-10-12T14:19:47","slug":"capital-raising","status":"publish","type":"post","link":"https:\/\/www.turbocrowd.it\/en\/capital-raising\/","title":{"rendered":"Why making capital raising a business asset"},"content":{"rendered":"

The least efficient way to do crowdfunding capital raising<\/strong> is to consider it an extraordinary, tedious but necessary operation. The most efficient one is to make capital raising a business asset<\/strong>.<\/p>\n\n\n\n

Businesses are used to considering capital raising as an extra activity to be carried out at certain stages of a company's life to ensure its survival and growth. When it comes to raising capital through alternative finance instruments such as crowdfunding, the operation is considered even more extraordinary and occasional.<\/p>\n\n\n\n

Truly embracing the alternative finance revolution and seizing all its opportunities, on the other hand, means making capital raising systematic<\/strong>, as if it were a new line of business or a corporate function. Just as there is at least one person on your team for each function, when not an entire office dedicated to it, it must be the same for capital raising: you must have a permanent person or department that deals specifically with capital raising.<\/p>\n\n\n\n

The benefits of raising capital as an asset<\/strong><\/h2>\n\n\n\n

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The benefits of making crowdfunding capital raising systematic<\/strong> can be divided into two fields of effectiveness: financial and business.<\/p>\n\n\n\n

From a financial perspective, crowdfunding has four obvious main advantages for a company:<\/p>\n\n\n\n

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  1. possibility of avoid debt, thus reducing the risk of default or insolvency compared to bank or other traditional financing.<\/li>\n\n\n\n
  2. Ability to retain control over one's own business, avoiding the need to cede governance to third parties, as is the case, for example, with investment funds or business angels.<\/li>\n\n\n\n
  3. Tax incentives for investors who can take their investment as a deduction if made in innovative companies.<\/li>\n\n\n\n
  4. Ability to reinvest the capital raised immediately, thereby creating a flywheel to increase the value of the company.<\/li>\n<\/ol>\n\n\n\n

    While the financial benefits may seem immediately intuitive, the more generically business benefits are less obvious and more widespread:<\/p>\n\n\n\n

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    1. make a great and innovative marketing campaign<\/a>.<\/li>\n\n\n\n
    2. Engaging customers with a different angle of attack than usual (different proposal, leverage and communication).<\/li>\n\n\n\n
    3. Little or no competition because it is difficult for a competitor to be crowdfunding at the same time.<\/li>\n\n\n\n
    4. Transformation of the business model by adding new products, whether yields in the case of lending crowdfunding or corporate shares in the case of equity crowdfunding.<\/li>\n\n\n\n
    5. Improved delivery process of complex offerings (e.g., consulting or ad hoc projects), which become more immediate as a result of the investment;<\/li>\n\n\n\n
    6. Improving customers' Loan To Value (LTV) by lowering the risk of the investment.<\/li>\n\n\n\n
    7. Increased commitment of customers who also become investors<\/a>.<\/li>\n<\/ol>\n\n\n\n

      All these benefits lead to solid and continued growth over time<\/strong>\nof the company if they are continually fueled by crowdfunding capital raising as asset, not least because a virtuous circle is established in which the effects of the raising activities result in increased attractiveness to new funders and the game begins again.<\/p>\n\n\n\n

      With a single successful crowdfunding campaign surely these results are still achieved, but on a smaller scale and with a large waste of margin.<\/p>\n\n\n\n

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      <\/div>\n\n\n\n

      Want to learn more directly with our crowdfunding experts about the topic you are reading about?<\/strong><\/h2><\/div>\n\n\n\n

      Turbo Crowd can reveal to you all the tricks of the crowdfunding trade, explain the capital-raising opportunities available to you, and provide you with practical support to carry out a successful crowdfunding campaign.<\/p><\/div>\n\n\n\n

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      Book a FREE video call!<\/div><\/a><\/div><\/div>\n<\/div><\/div>\n\n\n\n
      <\/div>\n<\/div>\n\n\n\n

      <\/p>\n\n\n\n

      How to make capital raising a business asset<\/strong><\/h2>\n\n\n\n

      <\/p>\n\n\n\n

      There is no one way to do it: the beauty of crowdfunding is that it offers so many possible tools that can be combined in different ways to support business growth and then monetize that growth. We call them the 8 pillars of capital raising<\/a> and they are equity crowdfunding, Participatory Financial Instruments, lending crowdfunding, reward crowdfunding, real estate crowdfunding, Crowdfunding listing, \nInitial Decentralized Exchange Offering and Security Token Offering.<\/p>\n\n\n\n

      Some examples that come from the experience of our clients:<\/p>\n\n\n\n