Crowdfunding vs HNW investors

Which one to choose?

I hear this question a lot, so here’s a quick summary 👇

– Crowdfunding: Investors are normally users of the product.

– HNW: do not only provide money. They are often successful entrepreneurs themselves, which means they are in the perfect position to give you advice.

– Crowdfunding: Check sizes around $1000

– HNW: Check sizes from $25K up to $250K

– Crowdfunding: It doesn’t have to be equity-based.

– HNW: You give away equity and have the investor with you in the long run.

In conclusion:

🎯 Go for crowdfunding if you have a working prototype and enough capital (or a large enough audience) to give your campaign the needed initial traction.

🎯 Go for HNW investors if you think you would benefit from mentorship and connections and if you have the right kind of scalable business to attract angels.

#startup#entrepreneurs#business#crowdfunding#capitalraising#venturefunding

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