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Momentum Biz Tip #8 (to fund your business)

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May 22, 2024/in Funding & Biz Tips

This Biz Tips series is inspired by the modules in our Momentum Accelerator.

Biz Tip # 8: Consider crowdfunding


At some point, most businesses need outside capital to grow.


The traditional funding route features lenders and/or investors. Crowdfunding is another way to go, especially if you have credit issues or haven’t been in business very long.

The 4 types of crowdfunding platforms:

Rewards-based: Your backers receive rewards in exchange for their pledges, often in the form of the product that’s being funded. Kickstarter is a good example of this.

Equity-based: The backers receive partial ownership of the company in exchange for the money they give. Often, the company must be sold before the backers can receive their investment and interest. Wunderfund is a local example of this type of platform.

Debt-based: The money the business owner receives is in the form of a loan. The backers receive regular payments with interest until the loan is repaid. Kiva is a great option because their loans are interest-free.

Donation-based: The backers give their money purely as a donation. This is most often used by creatives, such as artists, musicians or writers, whose fans support them in this way. Patreon is an example of the donation-based model.


Why you should care:

If you aren’t quite ready to qualify for a loan, but you still need money, crowdfunding may be a good option for you. It also helps you gather potential customers who want you to succeed.

We have a free pdf called The Basics of Crowdfunding, which includes the pros and cons of each category with additional examples. You can get it here.

Give it some thought.

So many of the women I speak with are trying to build their business by bootstrapping all the expenses.

This is a smart idea when you’re first starting out, since it forces you to support the business with the money you can earn. This means that you are constantly testing your offerings to see if they are good enough to generate the revenue you need.

But there are many times when you need more inventory or materials, equipment or other large expenses that you can’t afford in the moment. If your financial projections (something you’ll create in MOMENTUM) show that getting outside funding will help you grow, then you need a source for that funding.

That’s when some of these crowdfunding platforms might be ideal. Explore the options to see which might be best for you.

Also, you can check out this webinar we did on crowdfunding. I think it will be helpful!

Explore Momentum

Between the experts, your personal mentor, the Aviatra team and the women in your cohort, you will feel so supported and empowered. We’ll all be cheering you on!


Be the best business owner you can be. Be part of MOMENTUM. Learn more here.

Written by Jill Morenz, President & CEO at Aviatra Accelerators


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