Four Ways Crowdfunding Is Helping Small Businesses In The Real World

crowdfund capital advisorsYesterday we received word that Crowdfund Capital Advisors had released a research report and accompanying op-ed at VentureBeat examining some of the real, tangible benefits crowdfunding was creating for small businesses. Here are ten quick points from the report that show how crowdfunding is helping small businesses grow and access capital…

Revenues increase immediately following a successful crowdfunding round
Quarterly revenues increased by an average of 24% for companies that use crowdfunding successfully. It’s much greater for those using equity crowdfunding, a 351% increase.

Crowdfunding carries a pretty handsome hourly rate of return
One hour invested in a successful crowdfunding campaign is worth an average of $813.

benefits of crowdfunding

Crowdfunding often precedes follow-on funding from angels and VCs
28% of companies that successfully complete a crowdfunding campaign close an additional round of funding from an angel investor or venture capitalist within 3 months.

Crowdfunding helps companies hire
39% of companies that had crowdfunded successfully used funds to hire an average of 2.2 additional staffers. This means that every for every 100 successful campaigns of this type, about 85 jobs are created within three months.

See the full report below…

How Does Crowdfunding Impact Job Creation

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  • Rob Murray Brown

    What type of CF? One assumes this is a report on rewards based CF and possibly lending CF as equity CF has not featured in the US yet. Certainly the figures for equity CF show completely the opposite to date in the UK where it has been going since 2011 – out of approx 100 deals, 30 have reported accounts and of those 30, 3 have closed and only one has hit its sales targets – most of the remaining 26 missing them by several planets. If these sales projcetions were used by NASA 1969 would have seen man landing on Uranus – then where would we be?