The One Reason Crowdfunding Beats VC Funding

source: giphy

You’ve likely seen plenty of entrepreneurs talk about their funding right here on Medium, but what if I told you crowdfunding is better for your company than VC funding?

Here’s why crowdfunding is a better fit than VC funding for most entrepreneurs:

Familiar skill set

The one reason that crowdfunding beats VC funding is the skill sets that each require. Crowdfunding requires a strong knowledge of marketing, specifically e-commerce. Yes there are some nuances, but as a whole it follows ecommerce best practices closely.

VC funding on the other hand is all about your network. If you have the required connections great! But if you don’t already know the right people, you’ve got a long road ahead of you. If you’re a networking pro you can still attain funding without having any connections already in your network, but is networking really your strongest skill?

If the answer to that wasn’t a resounding yes, you may want to consider crowdfunding instead.

Why crowdfunding is a better fit for most entrepreneurs

Entrepreneurs are, in a nutshell, people who create and grow a business or, in the case of serial entrepreneurs, many businesses. And during the starting phases of any business, they must wear many hats.

One of those hats is always marketing. This means that most (if not all) entrepreneurs have some level of marketing knowledge, even if it’s only conceptually. And that’s the key reason that crowdfunding will be a better fit for most entrepreneurs.

It uses skills they’ve already developed through the course of just being entrepreneurs!

But what if you really have 0 clue about marketing?

Well, that’s another category in which crowdfunding has an edge. When it comes to VC funding, it’s up to you to do all the heavy lifting. Sure you can outsource some aspects, like having your pitch deck designed, but you will have to be the one to pitch to potential investors.

Crowdfunding on the other hand can be almost entirely outsourced. Consultants and agencies (like our own) can create and manage the campaign page, social media marketing, email marketing, product video, professional images, and even press mentions all on your behalf.

This means that even if you don’t have any marketing know-how, you can still launch a successful crowdfunding campaign!


While it’s true that the initial hype surrounding crowdfunding has died down, it still presents a tremendous opportunity. And even though getting and writing about VC funding right now is all the rage, a crowdfunding campaign can often be a better fit for entrepreneurs skills sets.

Entrepreneurs like you are already using our marketing services to grow their business and launch new products on Kickstarter. If you’re interested in learning more about how you can grow your business or launch your crowdfunding campaign visit our website.