A Kickstarter campaign is a great way to bring in a large amount of funding in a short amount of time. Once the campaign is over, though, you’ll still be in need of funding, and this time, you won’t have the advantage of being the “independent start-up.” How, then, do you ween yourself off of crowdfunding and instead transition to a more sustainable business model? To help answer this question, here are a few tips to help you transition your business funding after a Kickstarter.
Angel Investors
If your funding needs are fairly small, you can seek out angel investors to help you pivot away from crowdfunding sites. These investors are similar to what you see on the show “Shark Tank,” in which individuals with a lot of money get a small portion of your company in exchange for a small investment. This is a more stable form of investment because, unlike with Kickstarter, you don’t promise any goods in return for the investment. Instead, you simply promise the investors a portion of your equity.
Online Store
Ultimately, a successful company needs to be able to support itself on the sales of the product it set out to create. To do that, though, you’ll need a robust online store to be able to distribute your merchandise to a wide audience. Sites like Xsolla can help you sell, market, and develop your products so that you can increase the viability of your company on many different levels.
Venture Capitalists
If you need a major investment to propel your company to the next level, then an investment from venture capitalists is one of your best options. The main difference between venture capitalists and angel investors is that venture capitalists typically invest a far larger sum of money than angel investors. In return, venture capitalists receive a portion of your company’s equity, with the hope of seeing dramatic returns thanks to the explosive growth of your company.
Diversify
Another important aspect of long-term success is being able to diversify your business offerings. Rather than focusing your business around a single product or business, it’s important to find offshoots of these core competencies that you can capitalize on to create growth. For example, if your core product is a video game, then an offshoot might be consulting with advertising firms whose design aesthetic matches the design aesthetic you achieved in your game.
Even as your business grows, adequate funding is still the bottom line. Without capital, your business doesn’t exist. Therefore, it’s important to stay nimble, always willing to utilize a variety of funding sources to increase your success. With this startup mindset, you’ll be able to fuel long-term growth and stability.
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