It’s the classic struggle for new startups: companies need money to launch and scale successfully, but without traction, traditional avenues of funding aren’t available to most founders.
Crowdfunding has been a popular way for startups to raise capital for over twenty years. However, when many people hear the word crowdfunding, they think of the rewards model in which companies collect pledges in exchange for a prototype or reward. Equity crowdfunding is relatively new, and it works differently than the campaigns on platforms like Kickstarter. Instead of trading rewards, it inspires investors to loan capital to businesses in exchange for equity.
When a leadership team raises capital through equity crowdfunding, they’re trading shares of their startup for investments. This can be a win-win for the company and the investor alike. It all depends on a company’s ability to solve a real problem and scale quickly.
Arora Project helps connect these companies with potential investors. Founding his own digital media agency was a natural move for Krishan Arora, who’s been interested in both marketing and economics since he attended Harvard. While studying economics, Krishan served as Apple’s Harvard representative and gained unique insight into the master brand’s digital marketing impact. After graduation, Krishan helped his friends raise money for their startups via equity crowdfunding.
“I realized there was huge potential in equity crowdfunding when I started running campaigns to help my friends fund their businesses. Campaigns that started with the goal of reaching twenty thousand were reaching anywhere between fifty thousand to five hundred thousand. I realized I had tapped into a method that was truly the future of raising capital, so I decided to go all in,” Krishan explains.