Crowdfunding

Crowdfunding entails reaching out to a large number of investors and helping them invest small amounts in your new business. It focuses on the concept of democratization - no longer do businesses have to rely on larger, powerful VC's for investment! The idea is that if many interested folks are asked for relatively small amounts as investment , it gets easier to reach a desired goal for the capital needed to fund your expansion plans and take your business to the next level. Crowdfunding has proven to work particularly well as you get to ask also market your idea to potential customers /interested stakeholders. The funds and awareness raised through crowdfunding help gauge how popular the idea would be upon completion and have investors who can help with their network/ support /credibility.

Crowdfunding in a HR tech start up

One of the biggest advantages of Crowdfunding most applicable to HR than any other function, is that it offers more than just capital that a startup needs to boost its growth. It also introduces startups to a large number of experts who are interested in transforming the traditional way HR functions in organizations. This could mean more financial aid, or services and skills that startups could find useful for their business.