29 Apr Does Social Media Attract Crowdfunding Investors?
Once considered the darling of investors searching to cash in on Internet success, social media has fallen below several other industries in terms of befitting from crowdfunding sources.
Yet, social media remains on crowdfunding investor radars, as social media represents the quintessential destination for investors that collaborate online to reap high returns. Crowdfunding investors should not expect to enjoy record returns that Facebook and Twitter delivered, but social media still generates one of the best ROI ratios for any other industry.
In with the New, Out with the Old
Twitter and Facebook raised the investment bar to stratospheric levels. Investors in both social media start ups benefited from returns unmatched by any other start up in recent memory. After the success of both social media giants, money poured into every social media start up, including money produced by crowdfunding campaigns that leveraged social media platforms to attract investors.
Most social media startups bit the proverbial financial dust, which caused crowdfunding campaigns to change investment strategies. After years of relative calm, social media has returned as a viable destination for crowdfunding dollars. Three social media ventures highlight the return to social media crowdfunding prominence.
But Social Media Really IT?
But is social media the only successful networking strategy behind crowdfunding? Of course not…but it certainly has played a crucial role in entrepreneurs’ and investors’ strategies. Social media is merely an outlet to reach others via a number of channels and parameters that reach a niche market…and a successful one at that. And while social media has proven to be a successful source, its longevity might be limited.
However, many investors still view social media as an investment itself. But crowdfunding merely leverages social media as a resource and tool for another purpose or to attract support and an audience behind a cause, project or entity.
Partnering with a reputable crowdfunding firm can really make all the difference in a successful campaign. And, yes, social media is a part of the strategy to pool investors and entrepreneurs together. A successful crowdfunding firm will work with entrepreneurs and investors alike to help them reach their support and investment goals by services such as equity crowdfunding, real estate crowdfunding, and debt crowdfunding, just to name a few.
So does social media still play a huge role in crowdfunding and in attracting investors? The answer is, yes. As we discussed above, the Internet has played a huge role in the growth, development, and popularity of crowdfunding…and social media is its partner in crime. Social media, if not an investment itself for some entrepreneurs, entities and investors can use social media as a resource to learn their target market, audience, and even “get the word out”. Use social media for your crowdfunding success.