{"id":361,"date":"2022-12-10T05:15:18","date_gmt":"2022-12-10T05:15:18","guid":{"rendered":"https:\/\/www.socialforaction.com\/blog\/?p=361"},"modified":"2023-01-30T05:18:33","modified_gmt":"2023-01-30T05:18:33","slug":"challenges-of-crowdfunding-in-india","status":"publish","type":"post","link":"https:\/\/www.socialforaction.com\/blog\/challenges-of-crowdfunding-in-india\/","title":{"rendered":"The Challenges Of Crowdfunding In India: Common Pitfalls And How To Avoid Them"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #222222;color:#222222\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #222222;color:#222222\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.socialforaction.com\/blog\/challenges-of-crowdfunding-in-india\/#the-challenges-faced-by-crowdfunding-campaigns-in-the-country\" title=\"The challenges faced by crowdfunding campaigns in the country\">The challenges faced by crowdfunding campaigns in the country<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.socialforaction.com\/blog\/challenges-of-crowdfunding-in-india\/#1-establishing-trust\" title=\"1. Establishing Trust\">1. Establishing Trust<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.socialforaction.com\/blog\/challenges-of-crowdfunding-in-india\/#2-choosing-the-right-platform\" title=\"2. Choosing The Right Platform\">2. Choosing The Right Platform<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.socialforaction.com\/blog\/challenges-of-crowdfunding-in-india\/#3-getting-potential-contributors-excited-about-your-dreams-beforehand\" title=\"3. Getting Potential Contributors Excited About Your Dreams Beforehand\">3. Getting Potential Contributors Excited About Your Dreams Beforehand<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.socialforaction.com\/blog\/challenges-of-crowdfunding-in-india\/#4-protecting-yourself-from-idea-thieves\" title=\"4. Protecting Yourself From Idea Thieves\">4. Protecting Yourself From Idea Thieves<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.socialforaction.com\/blog\/challenges-of-crowdfunding-in-india\/#5-calculating-investor-reward-and-planning-for-fulfillment\" title=\"5. Calculating Investor Reward And Planning For Fulfillment\">5. Calculating Investor Reward And Planning For Fulfillment<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.socialforaction.com\/blog\/challenges-of-crowdfunding-in-india\/#conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.socialforaction.com\/blog\/challenges-of-crowdfunding-in-india\/#join-the-crowdfunding-community\" title=\"Join The Crowdfunding Community\">Join The Crowdfunding Community<\/a><\/li><\/ul><\/nav><\/div>\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"the-challenges-faced-by-crowdfunding-campaigns-in-the-country\"><\/span>The challenges faced by crowdfunding campaigns in the country<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Once upon a time, if you had a killer business idea, the only way it was going to come to life was if you were lucky enough to find a bank to back you, and this often involved having deep pockets of your own. Those who didn\u2019t have collateral and a financial institution to support them usually had to wave goodbye to their dreams.<\/p>\n\n\n\n<p>Thankfully, that mold has been broken. Now, entrepreneurs and brilliant enterprising minds have more resources for getting their ideas to take flight. Crowdfunding has opened doors to amazing opportunities for many individuals and small businesses.<\/p>\n\n\n\n<p>That said, crowdfunding isn\u2019t always a straightforward process. There are challenges that everyone faces along the way. Yes, there\u2019s finding the perfect pitch that appeals to the right investors, but it\u2019s more than that. There are several lesser-known challenges that those who embrace crowdfunding are almost sure to come up against.<\/p>\n\n\n\n<p>Knowledge is power, so here are five challenges that you should expect to encounter in your journey. The more prepared for them you are, the more successful you\u2019ll be.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1-establishing-trust\"><\/span>1. Establishing Trust<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Many people consider crowdfunding because they\u2019re trying to break into the business. They have innovative ideas or talent that they want to promote and share. The only problem is that with lack of experience comes lack of exposure, and this means that potential investors don\u2019t have much to build trust on.<\/p>\n\n\n\n<p>Think about it. You\u2019re asking these people and companies to invest in someone they know very little about. It\u2019s bound to feel a little risky to them. While you can\u2019t magically create a past, you can build a future by taking steps to build your trustworthiness right now.<\/p>\n\n\n\n<p>It\u2019s as simple as transparency. Start by taking to social media and building a professional image for yourself. Be honest and transparent, and build a following. Get people excited about your ideas so that investors have more reason to back you.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2-choosing-the-right-platform\"><\/span>2. Choosing The Right Platform<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Not all <a href=\"https:\/\/socialforaction.com\/\">crowdfunding platforms<\/a> are created equal. On the surface, it might seem like they all offer the same basic service, but there\u2019s more to choosing the right platform than immediately meets the eye.<\/p>\n\n\n\n<p>For starters, reputation is key. When choosing a crowdfunding platform, look at the results, and do a little research before signing up. To avoid wasting time on the wrong platform, look at what types of businesses and ideas have had the most success. Are they aligned with what you\u2019re attempting to achieve, or are they off in another world altogether?<\/p>\n\n\n\n<p>Finally, look at some hard-core numbers to avoid challenges further down the road.<\/p>\n\n\n\n<p>\u2022 How many active campaigns do they have running?<\/p>\n\n\n\n<p>\u2022 How many visitors do they get?<\/p>\n\n\n\n<p>\u2022 How much is it going to cost you to run a campaign on this platform, and is the cost worth it?<\/p>\n\n\n\n<p>\u2022 Have you pored over their terms and conditions with a fine-tooth comb?<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3-getting-potential-contributors-excited-about-your-dreams-beforehand\"><\/span>3. Getting Potential Contributors Excited About Your Dreams Beforehand<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>A common crowdfunding mistake is making the creation of a campaign the No. 1 priority. The truth is that to be successful, the implementation of crowdfunding should be much further down the list.<\/p>\n\n\n\n<p>The reason for this is that starting with a blank slate makes the challenge even more difficult for you. It means you\u2019re going to be taking a ton of backward steps and wasting time.<\/p>\n\n\n\n<p>The first thing to do, besides creating a solid business plan, is to generate excitement about your idea. Coming to a platform with a plan in place, a great word-of-mouth reputation and a following that\u2019s already amped up about your ideas is going to get investors excited about your potential.<\/p>\n\n\n\n<p>In the months before you start your campaign, make sure that you have an online presence, and start building your reputation through actions in your industry, or even your community. Take as many steps as you can on your own in the beginning stages, and if possible, get yourself in the line of sight of potential investors.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"4-protecting-yourself-from-idea-thieves\"><\/span>4. Protecting Yourself From Idea Thieves<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Once you put your idea out there, it\u2019s within view of everyone. Unfortunately, some of those people won\u2019t have the purest intentions, and they\u2019ll try to use your hard work to their own financial advantage. Unless you have a completely unique, never-been-done-before idea, it can be difficult to claim sole ownership.<\/p>\n\n\n\n<p>Luckily, there are a few things that can be done to protect yourself preemptively.<\/p>\n\n\n\n<p>First, determine if any part of your idea can be protected by copyright laws, and file for one immediately. Additionally, be wary of how much information you\u2019re sharing publicly and what you\u2019re sharing in private. Have anyone who will have access to sensitive ideas sign a nondisclosure agreement, and enlist the advice of a lawyer if necessary.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"5-calculating-investor-reward-and-planning-for-fulfillment\"><\/span>5. Calculating Investor Reward And Planning For Fulfillment<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The people who invest in your project or idea are going to want something in return. One of the biggest challenges is figuring out what that return should be and then making sure that you\u2019re able to follow through on the agreement. Some might want a small token and regular updates, while others are going to want a slice of your pie.<\/p>\n\n\n\n<p>Generally speaking, the sweeter the incentive, the bigger the investment. Still, be careful to not overcommit yourself. First, decide what\u2019s reasonably doable.<\/p>\n\n\n\n<p>Follow-through is huge. Make sure you\u2019re planning to follow through on your promises each step of the way. Remember, being honest and realistic with investors now means they\u2019re more likely to have your back in the future.<\/p>\n\n\n\n<p>Crowdfunding is a great and effective way to reach your professional goals. Being prepared for challenges will only make you more successful. When you\u2019re prepared, nothing can hold you back.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Knowing these challenges and how to navigate them can help you a great deal and prepare you better to raise funds via crowdfunding.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"join-the-crowdfunding-community\"><\/span>Join The Crowdfunding Community<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>If you\u2019re ready to jumpstart your campaign with expert crowdfunding consultants on board, contact us today! We\u2019ll help you navigate each stage so that raising money becomes more accessible than ever before.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The challenges faced by crowdfunding campaigns in the country Once upon a time, if you had a killer business idea, the only way it was going to come to life was if you were lucky enough to find a bank to back you, and this often involved having deep pockets of your own. Those who [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":363,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-361","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crowdfunding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The Challenges Of Crowdfunding In India | Social For Action<\/title>\n<meta name=\"description\" content=\"Learn about the challenges faced in crowdfunding in India and discover common pitfalls to avoid. 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