Crowdfunding's Potential
A sufficient number of startups is an integral part of any market economy. Most of them usually can't stand the competition and die. But others create workplaces, pay taxes, develop business and take part in economic growth. Startups are very important for promoting progressive ideas and innovations. But how to find investors for the only idea? This problem is solved by crowdfunding.
Crowdfunding is the modern economic phenomenon. Its essence lies in raising funds for commercial and non-commercial projects. But crowdfunding solves not only problem of investing. One of the key tasks of marketing - research, analysis, and evaluation of the needs of potential customers. This is a vital element in the development strategy for startups. In the case of an incorrect understanding of customer needs startup is doomed to failure with high probability. Using the crowdfunding platforms, startups can get valuable information about consumer properties and the desired characteristics of the goods or services before it gets to customers.
All in all, crowdfunding has a great potential as a tool to stimulate startups. It is an amazing solution for solving the problem of financing and marketing. And it must and will develop.
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Corrections · 1
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Hi Elena, just a few questions:
_This 'crowd', are they investors? people of charity who just like to help startups ? Or some profit organizations which function as an intermediate between money holders and entrepreneurs/startups/ideas-holders, they create events or smth ?
_And don't you think that startup, had this new idea only after 'detecting' some need in the market, so customers' needs shouldn't be THAT big of a problem, should they?
^ ^
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