The Danish Startup Ecosystem Guide - Magasin - Side 45
Connect with your customers
while funding your idea
Essentially, crowdfunding is a method of raising capital for startups through small
contributions from a large number of people - the crowd. However, the method has
developed into a diverse subset of ways to crowdfund which can be used from smaller
€10.000 test initiatives to multimillion euro equity deals.
D
anes and Danish companies raised DKK300 million from crowdfunding in 2021. It is typically
done through online platforms.
The platforms allow the crowd to browse
and support a range of different projects. The reward for investing can be a
product, equity in the company or a fixed
return on the investment like a loan.
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No matter the reward, crowdfunding
comes with some key benefits. It provides access to a large pool of potential investors. This can be particularly
valuable for startups that may not have
access to traditional sources of funding,
such as venture capital. Additionally,
crowdfunding allows startups a way
to validate their product or service by
gauging interest and demand from the
market early on.
Crowdfunding can also be a way for
startups to build a community around
their product or service. By engaging with
a lot of small investors (sometimes many
thousands) and sharing their story,
startups can create a loyal following that
help drive future growth and support.
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