{"id":762,"date":"2022-02-21T11:13:52","date_gmt":"2022-02-20T22:13:52","guid":{"rendered":"https:\/\/marketingwebsite.afirmo.com\/nz\/?p=762"},"modified":"2023-05-23T07:43:05","modified_gmt":"2023-05-22T19:43:05","slug":"can-crowdfunding-help-fund-your-business-goals","status":"publish","type":"post","link":"https:\/\/www.afirmo.com\/nz\/resources\/can-crowdfunding-help-fund-your-business-goals\/","title":{"rendered":"Can crowdfunding help fund your business goals?"},"content":{"rendered":"<p>Crowdfunding is where people help people for some kind of reward, such as products, benefits, interest or shares. It\u2019s different to the donation appeals you hear about in the news \u2013 that\u2019s pure donation and is usually about helping good causes and people who are in trouble.<\/p>\n<p>The concept behind crowdfunding is when lots of individuals contribute small amounts of money to make a business venture or idea happen. There are three main types of crowdfunding to look into \u2013 rewards-based crowdfunding, equity crowdfunding and peer-to-peer lending.<\/p>\n<h3>How does rewards-based crowdfunding work?<\/h3>\n<p>This type of crowdfunding encourages people to give you an online contribution in exchange for some kind of reward. For example, if you want to launch a new brand of active wear for cyclists, you could offer a package of your products or a discount in return for investment. By creating several benefit tiers, each linked to a different contribution value, you can allow more people to help you out. If your business idea revolves around a service, you could reward investors with free-of-charge or discounted access to your service.<\/p>\n<p>There are many rewards crowdfunding platforms out there. Some are suited to traditional business models and others are suitable for creative endeavours. Probably the best-known platform for small business is Kickstarter. Others include Pozible, PledgeMe and Indiegogo.<\/p>\n<p>If your business is based on creativity of some kind, Patreon is a popular platform. Those who value your product can support your work with a monthly membership. You can reward them with special treatment, extra products or some other kind of benefit.<\/p>\n<p>Benefits of rewards crowdfunding:<\/p>\n<ul>\n<li>You keep full ownership of your business.<\/li>\n<li>Investors could become evangelists for your products or service, so you get a bunch of honorary sales people to help you along.<\/li>\n<li>It\u2019s also possible your investors will become long-term customers.<\/li>\n<li>You can test product\/service ideas on your investors.<\/li>\n<\/ul>\n<h3>How does equity-based crowdfunding work?<\/h3>\n<p>This is the small business equivalent of listing on the stock exchange. It lets you offer shares in your company in exchange for funding. These are unlisted shares, because they aren\u2019t bought or sold on a public share market. There will be legal paperwork involved, so expect some homework before you go out with your offer. For example, you\u2019ll need to complete some kind of legal agreement which provides detailed terms of the investment to all committed investors.<\/p>\n<p>If you don\u2019t want to offer investors shares in your company, you can offer them something called a \u2018convertible note\u2019. In the future, this note can be converted to real shares.<\/p>\n<p>Popular equity-based crowdfunding platforms include PledgeMe, Snowball Effect and Equitise. Be sure to read all the fine print on their sites before stepping in. Because large sums of money can be involved, equity crowdfunding platforms are registered with and regulated by the FMA (Financial Markets Authority).<\/p>\n<p>Benefits of equity-based crowdfunding:<\/p>\n<ul>\n<li>You can raise larger amounts of money that you\u2019d typically get through a rewards-based offer.<\/li>\n<li>You can pitch to a lot of potential investors at once, which is more time-efficient.<\/li>\n<li>You\u2019re still in control of your company, even though you\u2019re sharing it with others.<\/li>\n<li>Investors may become customers, helping to grow your customer base.<\/li>\n<li>You don\u2019t have to pay the money back.<\/li>\n<\/ul>\n<h3>How does peer-to-peer lending work?<\/h3>\n<p>Peer-to-peer lending is about people lending to people, rather than banks and financial companies lending to people. Also known as P2P lending, social lending and crowd lending,\u00a0 deals are done through an online platform that connects borrowers directly to lenders. There will be interest charged and the amount of interest you\u2019ll pay can depend on your creditworthiness.<\/p>\n<p>In New Zealand there are several peer-to-peer lenders. For example, Squirrel, Zagga, Harmoney, PledgeMe and Lending Crowd.<\/p>\n<p>Benefits of P2P lending:<\/p>\n<ul>\n<li>You don\u2019t need to apply for a loan through a bank or finance company.<\/li>\n<li>You might pay a lower interest rate.<\/li>\n<li>It all happens online, which is quick and convenient.<\/li>\n<li>You can use the money for anything you like, however you will need to pay it back.<\/li>\n<\/ul>\n<h3>What about angel investors?<\/h3>\n<p>Angel investors are wealthy investors who provide financial backing for start-ups and entrepreneurs they believe in. They\u2019ll usually want some equity in your company. The financial injection you get from an angel investor could be the only funding you need.<\/p>\n<p>Typically, angel investors support innovative products and services that have excellent potential for success or could make a positive difference in the world. You might even get some mentoring from an angel investor, if they have significant business experience. Finding an angel investor could be as simple as searching on the internet. As with the other forms of funding discussed above, you\u2019ll need to have a great pitch document ready.<\/p>\n<h3>Making sure your pitch is perfect<\/h3>\n<p>If you decide to have a crack at raising money for your venture through any kind of crowdfunding, you need to create a convincing pitch using words, images and videos. Your offer needs to capture the audience\u2019s attention, highlight why your business or idea could be a winner, and then convince them to get on board.<\/p>\n<p>To get your pitch perfect, you might want to enlist some help from a professional. For example, a marketer, copywriter or videographer. If you don\u2019t want to spend anything on perfecting your pitch, see if you can get some free help from a friend or family member who knows about selling. You can also study the pitches of other companies on platforms like Kickstarter. It\u2019s easy to see who\u2019s successful by whether they\u2019re achieved or surpassed their finance goals.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Crowdfunding is where people help people for some kind of<\/p>\n","protected":false},"author":3,"featured_media":1876,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[7],"tags":[],"class_list":["post-762","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-money-and-tax"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.1.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Can crowdfunding help fund your business goals? | Afirmo NZ<\/title>\n<meta name=\"description\" content=\"Can crowdfunding help you get your business off the ground? Crowdfunding is when lots of individuals contribute small amounts of money.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/marketingwebsite.afirmo.com\/nz\/resources\/can-crowdfunding-help-fund-your-business-goals\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Can crowdfunding help fund your business goals? | Afirmo NZ\" \/>\n<meta property=\"og:description\" content=\"Can crowdfunding help you get your business off the ground? Crowdfunding is when lots of individuals contribute small amounts of money.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/marketingwebsite.afirmo.com\/nz\/resources\/can-crowdfunding-help-fund-your-business-goals\/\" \/>\n<meta property=\"og:site_name\" content=\"Afirmo NZ\" \/>\n<meta property=\"article:published_time\" content=\"2022-02-20T22:13:52+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-05-22T19:43:05+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/marketingwebsite.afirmo.com\/nz\/wp-content\/uploads\/2022\/02\/23-can-crowdfunding-help-fund-your-business-goals.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1600\" \/>\n\t<meta property=\"og:image:height\" content=\"963\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Brendan Wilde\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Brendan Wilde\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/marketingwebsite.afirmo.com\/nz\/resources\/can-crowdfunding-help-fund-your-business-goals\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/marketingwebsite.afirmo.com\/nz\/resources\/can-crowdfunding-help-fund-your-business-goals\/\"},\"author\":{\"name\":\"Brendan Wilde\",\"@id\":\"https:\/\/marketingwebsite.afirmo.com\/nz\/#\/schema\/person\/7296591f4ef3162522de4fc3ef08730a\"},\"headline\":\"Can crowdfunding help fund your business goals?\",\"datePublished\":\"2022-02-20T22:13:52+00:00\",\"dateModified\":\"2023-05-22T19:43:05+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/marketingwebsite.afirmo.com\/nz\/resources\/can-crowdfunding-help-fund-your-business-goals\/\"},\"wordCount\":950,\"publisher\":{\"@id\":\"https:\/\/marketingwebsite.afirmo.com\/nz\/#organization\"},\"image\":{\"@id\":\"https:\/\/marketingwebsite.afirmo.com\/nz\/resources\/can-crowdfunding-help-fund-your-business-goals\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.afirmo.com\/nz\/wp-content\/uploads\/2022\/02\/23-can-crowdfunding-help-fund-your-business-goals.jpg\",\"articleSection\":[\"Money &amp; tax\"],\"inLanguage\":\"en-NZ\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/marketingwebsite.afirmo.com\/nz\/resources\/can-crowdfunding-help-fund-your-business-goals\/\",\"url\":\"https:\/\/marketingwebsite.afirmo.com\/nz\/resources\/can-crowdfunding-help-fund-your-business-goals\/\",\"name\":\"Can crowdfunding help fund your business goals? | Afirmo NZ\",\"isPartOf\":{\"@id\":\"https:\/\/marketingwebsite.afirmo.com\/nz\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/marketingwebsite.afirmo.com\/nz\/resources\/can-crowdfunding-help-fund-your-business-goals\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/marketingwebsite.afirmo.com\/nz\/resources\/can-crowdfunding-help-fund-your-business-goals\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.afirmo.com\/nz\/wp-content\/uploads\/2022\/02\/23-can-crowdfunding-help-fund-your-business-goals.jpg\",\"datePublished\":\"2022-02-20T22:13:52+00:00\",\"dateModified\":\"2023-05-22T19:43:05+00:00\",\"description\":\"Can crowdfunding help you get your business off the ground? Crowdfunding is when lots of individuals contribute small amounts of money.\",\"breadcrumb\":{\"@id\":\"https:\/\/marketingwebsite.afirmo.com\/nz\/resources\/can-crowdfunding-help-fund-your-business-goals\/#breadcrumb\"},\"inLanguage\":\"en-NZ\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/marketingwebsite.afirmo.com\/nz\/resources\/can-crowdfunding-help-fund-your-business-goals\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-NZ\",\"@id\":\"https:\/\/marketingwebsite.afirmo.com\/nz\/resources\/can-crowdfunding-help-fund-your-business-goals\/#primaryimage\",\"url\":\"https:\/\/www.afirmo.com\/nz\/wp-content\/uploads\/2022\/02\/23-can-crowdfunding-help-fund-your-business-goals.jpg\",\"contentUrl\":\"https:\/\/www.afirmo.com\/nz\/wp-content\/uploads\/2022\/02\/23-can-crowdfunding-help-fund-your-business-goals.jpg\",\"width\":1600,\"height\":963},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/marketingwebsite.afirmo.com\/nz\/resources\/can-crowdfunding-help-fund-your-business-goals\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/marketingwebsite.afirmo.com\/nz\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Can crowdfunding help fund your business goals?\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/marketingwebsite.afirmo.com\/nz\/#website\",\"url\":\"https:\/\/marketingwebsite.afirmo.com\/nz\/\",\"name\":\"Afirmo NZ\",\"description\":\"\",\"publisher\":{\"@id\":\"https:\/\/marketingwebsite.afirmo.com\/nz\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/marketingwebsite.afirmo.com\/nz\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-NZ\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/marketingwebsite.afirmo.com\/nz\/#organization\",\"name\":\"Afirmo\",\"url\":\"https:\/\/marketingwebsite.afirmo.com\/nz\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-NZ\",\"@id\":\"https:\/\/marketingwebsite.afirmo.com\/nz\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/www.afirmo.com\/nz\/wp-content\/uploads\/2025\/10\/Afirmo_Logo.png\",\"contentUrl\":\"https:\/\/www.afirmo.com\/nz\/wp-content\/uploads\/2025\/10\/Afirmo_Logo.png\",\"width\":2001,\"height\":413,\"caption\":\"Afirmo\"},\"image\":{\"@id\":\"https:\/\/marketingwebsite.afirmo.com\/nz\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/marketingwebsite.afirmo.com\/nz\/#\/schema\/person\/7296591f4ef3162522de4fc3ef08730a\",\"name\":\"Brendan Wilde\",\"sameAs\":[\"https:\/\/organiksearch.nz\/\"]}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Can crowdfunding help fund your business goals? | Afirmo NZ","description":"Can crowdfunding help you get your business off the ground? Crowdfunding is when lots of individuals contribute small amounts of money.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/marketingwebsite.afirmo.com\/nz\/resources\/can-crowdfunding-help-fund-your-business-goals\/","og_locale":"en_US","og_type":"article","og_title":"Can crowdfunding help fund your business goals? | Afirmo NZ","og_description":"Can crowdfunding help you get your business off the ground? Crowdfunding is when lots of individuals contribute small amounts of money.","og_url":"https:\/\/marketingwebsite.afirmo.com\/nz\/resources\/can-crowdfunding-help-fund-your-business-goals\/","og_site_name":"Afirmo NZ","article_published_time":"2022-02-20T22:13:52+00:00","article_modified_time":"2023-05-22T19:43:05+00:00","og_image":[{"width":1600,"height":963,"url":"https:\/\/marketingwebsite.afirmo.com\/nz\/wp-content\/uploads\/2022\/02\/23-can-crowdfunding-help-fund-your-business-goals.jpg","type":"image\/jpeg"}],"author":"Brendan Wilde","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Brendan Wilde","Est. reading time":"5 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/marketingwebsite.afirmo.com\/nz\/resources\/can-crowdfunding-help-fund-your-business-goals\/#article","isPartOf":{"@id":"https:\/\/marketingwebsite.afirmo.com\/nz\/resources\/can-crowdfunding-help-fund-your-business-goals\/"},"author":{"name":"Brendan Wilde","@id":"https:\/\/marketingwebsite.afirmo.com\/nz\/#\/schema\/person\/7296591f4ef3162522de4fc3ef08730a"},"headline":"Can crowdfunding help fund your business goals?","datePublished":"2022-02-20T22:13:52+00:00","dateModified":"2023-05-22T19:43:05+00:00","mainEntityOfPage":{"@id":"https:\/\/marketingwebsite.afirmo.com\/nz\/resources\/can-crowdfunding-help-fund-your-business-goals\/"},"wordCount":950,"publisher":{"@id":"https:\/\/marketingwebsite.afirmo.com\/nz\/#organization"},"image":{"@id":"https:\/\/marketingwebsite.afirmo.com\/nz\/resources\/can-crowdfunding-help-fund-your-business-goals\/#primaryimage"},"thumbnailUrl":"https:\/\/www.afirmo.com\/nz\/wp-content\/uploads\/2022\/02\/23-can-crowdfunding-help-fund-your-business-goals.jpg","articleSection":["Money &amp; tax"],"inLanguage":"en-NZ"},{"@type":"WebPage","@id":"https:\/\/marketingwebsite.afirmo.com\/nz\/resources\/can-crowdfunding-help-fund-your-business-goals\/","url":"https:\/\/marketingwebsite.afirmo.com\/nz\/resources\/can-crowdfunding-help-fund-your-business-goals\/","name":"Can crowdfunding help fund your business goals? | Afirmo NZ","isPartOf":{"@id":"https:\/\/marketingwebsite.afirmo.com\/nz\/#website"},"primaryImageOfPage":{"@id":"https:\/\/marketingwebsite.afirmo.com\/nz\/resources\/can-crowdfunding-help-fund-your-business-goals\/#primaryimage"},"image":{"@id":"https:\/\/marketingwebsite.afirmo.com\/nz\/resources\/can-crowdfunding-help-fund-your-business-goals\/#primaryimage"},"thumbnailUrl":"https:\/\/www.afirmo.com\/nz\/wp-content\/uploads\/2022\/02\/23-can-crowdfunding-help-fund-your-business-goals.jpg","datePublished":"2022-02-20T22:13:52+00:00","dateModified":"2023-05-22T19:43:05+00:00","description":"Can crowdfunding help you get your business off the ground? Crowdfunding is when lots of individuals contribute small amounts of money.","breadcrumb":{"@id":"https:\/\/marketingwebsite.afirmo.com\/nz\/resources\/can-crowdfunding-help-fund-your-business-goals\/#breadcrumb"},"inLanguage":"en-NZ","potentialAction":[{"@type":"ReadAction","target":["https:\/\/marketingwebsite.afirmo.com\/nz\/resources\/can-crowdfunding-help-fund-your-business-goals\/"]}]},{"@type":"ImageObject","inLanguage":"en-NZ","@id":"https:\/\/marketingwebsite.afirmo.com\/nz\/resources\/can-crowdfunding-help-fund-your-business-goals\/#primaryimage","url":"https:\/\/www.afirmo.com\/nz\/wp-content\/uploads\/2022\/02\/23-can-crowdfunding-help-fund-your-business-goals.jpg","contentUrl":"https:\/\/www.afirmo.com\/nz\/wp-content\/uploads\/2022\/02\/23-can-crowdfunding-help-fund-your-business-goals.jpg","width":1600,"height":963},{"@type":"BreadcrumbList","@id":"https:\/\/marketingwebsite.afirmo.com\/nz\/resources\/can-crowdfunding-help-fund-your-business-goals\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/marketingwebsite.afirmo.com\/nz\/"},{"@type":"ListItem","position":2,"name":"Can crowdfunding help fund your business goals?"}]},{"@type":"WebSite","@id":"https:\/\/marketingwebsite.afirmo.com\/nz\/#website","url":"https:\/\/marketingwebsite.afirmo.com\/nz\/","name":"Afirmo NZ","description":"","publisher":{"@id":"https:\/\/marketingwebsite.afirmo.com\/nz\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/marketingwebsite.afirmo.com\/nz\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-NZ"},{"@type":"Organization","@id":"https:\/\/marketingwebsite.afirmo.com\/nz\/#organization","name":"Afirmo","url":"https:\/\/marketingwebsite.afirmo.com\/nz\/","logo":{"@type":"ImageObject","inLanguage":"en-NZ","@id":"https:\/\/marketingwebsite.afirmo.com\/nz\/#\/schema\/logo\/image\/","url":"https:\/\/www.afirmo.com\/nz\/wp-content\/uploads\/2025\/10\/Afirmo_Logo.png","contentUrl":"https:\/\/www.afirmo.com\/nz\/wp-content\/uploads\/2025\/10\/Afirmo_Logo.png","width":2001,"height":413,"caption":"Afirmo"},"image":{"@id":"https:\/\/marketingwebsite.afirmo.com\/nz\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/marketingwebsite.afirmo.com\/nz\/#\/schema\/person\/7296591f4ef3162522de4fc3ef08730a","name":"Brendan Wilde","sameAs":["https:\/\/organiksearch.nz\/"]}]}},"_links":{"self":[{"href":"https:\/\/www.afirmo.com\/nz\/wp-json\/wp\/v2\/posts\/762","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.afirmo.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.afirmo.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.afirmo.com\/nz\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.afirmo.com\/nz\/wp-json\/wp\/v2\/comments?post=762"}],"version-history":[{"count":0,"href":"https:\/\/www.afirmo.com\/nz\/wp-json\/wp\/v2\/posts\/762\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.afirmo.com\/nz\/wp-json\/wp\/v2\/media\/1876"}],"wp:attachment":[{"href":"https:\/\/www.afirmo.com\/nz\/wp-json\/wp\/v2\/media?parent=762"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.afirmo.com\/nz\/wp-json\/wp\/v2\/categories?post=762"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.afirmo.com\/nz\/wp-json\/wp\/v2\/tags?post=762"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}