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Massolution NYC 2013: How Crowdfunding Benefits Enterprises

For enterprises, crowdfunding is not about financing their own growth — so why should enterprises make use of the new way of raising capital? According to Invested.In’s Alon Goren, there are four key benefits of enterprise crowdfunding: idea validation, innovation, corporate social responsibility, and marketing. First, idea validation and innovation. Crowdfunding allows users to vote with their dollars. This sends very strong market signals to enterprises considering various options — like color and form factor — for their new products. One of the Massolution NYC 2013 speakers, ABN AMRO’s Arthur Van De Graf, described an experience where his organization did just that. The European bank created the platform Seeds in order to introduce a completely new offering to its clients. The platform enabled businesses to raise funds from their fans and potential customers. The campaigns, however, also acted as proof of concept, showing the bank which businesses appealed to the public and would be likely to succeed. Next, corporate social responsibility (CSR). With crowdfunding, enterprises can run CSR projects that engage fans. To illustrate an effective way crowdfunding can bolster CSR efforts, Goren brought up the example of Ciel, a Mexican water brand owned by Coca-Cola. The brand set up a platform called […]

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