New startup’s often encounter problems when seeking initial financing. Funds that may be acquired from friends, family and acquaintances are usually very limited whilst seeking financing from banks and financial institutions is difficult and costly for new companies. In this stage a crowdfunding campaign can be a particularly good choice for the company. Crowdfunding campaigns have the ability to reach a multitude of potential investors. In addition to facilitating the acquisition of capital, crowdfunding is the only form of financing that significantly promotes client acquisition, sales, and communication with clients. These outcomes strengthen the brand and aide in the development of relationships with our customers.

Equity-based crowdfunding helps economically sustainable, early-phase small and medium-sized companies raise capital efficiently while simultaneously building brand awareness and generating sales. Companies usually require capital in the range of ten million forints to one million euros. Online crowdfunding campaigns usually last for 45-60 days and are considered successful once their funding target has been reached. Investors receive shares in exchange for providing finances/capital. According to international best practices, those campaigns can launch successful campaigns, which are already in the market, possess all the necessary competences and have a strong online presence. Both B2B and B2C companies can be successful crowdfunders.