Promoting emerging initiatives through crowd funding and collective cooperation. Cumulus is definitely the best option for funding creative business plans through a dynamic and innovative platform where companies, small businesses and entrepreneurs obtain needed services, ideas or content by soliciting contributions from a group of selected investors.
Starting a new business, trying to get others to see the same vision as you and, on top of that, adding the process of fundraising could be sometimes overwhelming. That is where Angel Invest (Cumulus) with its guidance of investing crowd funding comes into play.
It is crucial to highlight that Angel Invest (Cumulus)´s idea of crowdfunding differentiates from the rest of websites that offer similar services. Angel Invest´s system of crowdfunding consists of the process of funding a business plan by a community of selected investors contributing to attain a certain monetary goal, project development or acquisition. Angel Invest (Cumulus) centralizes the effort of people willing to invest to network and pool their money with the aim of supporting the best entrepreneur business plan submitted.
The platform is interested in promoting Web-based idea competitions, or inducement prize contests and incentive generic ideas, cash prizes, and an Internet-based platform to facilitate easy idea generation and discussions.
Innovative system in the crowd funding arena
The reason why Angel Invest (Cumulus) is so attractive is that its process substantially varies from the rest of crowdfunding networks. Angel Invest (Cumulus) develops a user-friendly platform that comprises essential tools that help carry out its particular process of crowdfunding:
- A group of investors or people willing to invest come together to pledge funds for a project
- Entrepreneurs submit information and a video as a summary of their business plans.
- The platform conducts a vetting/due diligence work
- An audition is held where investors select the best entrepreneur.
- If the chosen business plan terms and conditions are accepted by the investors, they all participate in the project funding
Advantages of crowdfunding
Companies, especially small businesses, that have successfully received funds through a crowdfunding portal demonstrated that have a higher likelihood of being successful in marketing their products and services. Thanks to Angel Invest, organizations and entrepreneurs will have access to three key marketing advantages: Firstly, crowdfunding portals provide a great research tool. When people back projects or receive visits to their web page, they can assess and analyze potential demand for their ideas and benchmark their results with the results of other projects similar in the field. Secondly, crowdfunding furnishes a useful promotion tool. People search and back up projects without realizing that when they read texts and access to information an advertising function is being performed. Last but not least, it serves as a marketing channel due to the fact that backers are rewarded with first samples of products.
When entrepreneurs decide to participate in a crowdfunding site they are not only looking for money but also for brand recognition since they are certainly seen by a wide community of investors. These portals attract consumers who want to be “in the know” about the development of the latest products and services, press and media who struggle to be the first to discover new consumer trends, and professional services firms such as PR firms, ad agencies, and lawyers looking for clients. As a result, companies in crowdfunding websites obtain great publicity for their brands.
New ties and resources
Another advantage of participating in these portals is that access to new resources and connections is much easier and quicker. Depending on the platform chosen, entrepreneurs gain unprecedented access to information, experience and points of contact that can help them meet their needs and grow.
There are a number of motivations for businesses, entrepreneurs and investors to use crowdsourcing to accomplish tasks, find solutions for problems, or to gather information and thus the platform is expected to have the potential to be a problem-solving mechanism for government and nonprofit use.
Crowdfunding is accelerating at an unprecedented rate and is creating a great impact on government policy, enterprise innovation, and the role of financial institutions around the world. Massolution®, a research firm specializing in the crowdsourcing and crowdfunding industries, released its annual 2013CF – Crowdfunding Industry Report. After collecting data from 308 active crowdfunding platforms (CFPs) worldwide and carrying out an exhaustive research, the results revealed that crowdfunding market grows 81%, crowdfunding platforms raise $2.7 Billion and fund more than one million campaign. It is expected that in 2013 global crowdfunding volumes will exceed $5 billion.
Most Active Categories
At the beginning, Crowdfunding gained popularity with creative, philanthropic and social endeavors. Although this popularity has prevailed, new ventures have gained attention. Categories related to Business and Entrepreneurship, and Energy and Environment are the next highest performing areas:
- Social Causes are most active, driving close to 30% of all crowdfunding activity
- Business & Entrepreneurship (16.9%), and the two major
- Art Categories follow: Films & Performing Arts (11.9%) and Music & Recording Arts (7.5%)
- Energy & Environment (5.9%) is the emerging category among the five most active
In short, the mission of this website is to provide a streamlined platform crowded with ideas, initiatives and services working as guidance for startups and as a one-stop shop for interested investors.