InfoApril 10, 2013 · Software
Aspiring Start Up Companies Turning To Non-Traditional Sources To Raise Money, Such As Businesses And Crowdfunding
Boca Raton Company Cydec Is An Up And Coming Saas Ecommerce Platform Taking On Infusionsoft Which Just Raised $54 Million From Goldman SachsPress Release VideoDetails(prREACH)
Crowdfunding is one of the newest and most powerful methods that entrepreneurs and business owners can use to raise money. As the name implies, crowdfunding involves getting a group of regular individuals (the crowd) to collectively fund a company. Since banks and other ‘traditional’ methods of getting loans are more difficult to come by these days, more and more start up companies are turning to businesses and crowdfunding a new trend.
Cydec, based in Boca Raton, Florida is one of the forward looking start-up companies that is utilizing crowdfunding. In contrast to competitor InfusionSoft which just raised $54 million from Goldman Sachs, startup Cydec hopes to raise just $10,000 through crowdfunding for some seed capital. Like Infusionsoft, Cydec software offers users a cloud-hosted SAAS (Software as a Service) software solution for powering online their businesses, including sales processing and customer management, product management, recurring billing, affiliate management, subscriber list management, email broadcasting, sales tracking for marketing and advertising, and a CRM with visual dashboards and analytics for making an online business easier. Their product is more affordable, easier to use, more simple, and offers an alternative to the clumsy, confusing and more complicated shopping cart systems out there for website owners, digital publishers and online marketers. Cydec offers a robust yet affordable solution for online marketers and internet entrepreneurs at all levels of experience.
According to Cydec President Brett Fogle, “In the current environment in which banks still aren’t lending to small businesses, crowdfunding could not have come at a better time. We are hoping that potential users will see the benefit of what we offer and want to help us provide a better alternative to the marketplace.”
While the laws surrounding equity crowdfunding aren’t finalized yet, start up companies are testing the waters with currently legal ‘rewards’ based crowdfunding, in which different levels of donations get different levels of the company’s services as a result of their donation.
Crowdfunding has benefits beyond just funding. Raising Crowdfunding in order to launch a new product or service provides great market research. If individuals eagerly fund a particular product or service, then that new product or service is probably a hit. In addition, those who fund a business will most likely become loyal customers who provide positive word-of-mouth marketing to their friends and colleagues, which can increase a business owner’s revenues and profits.
Dave Lavinsky is an internationally renowned expert in the fields of businessplanning, capital raising, and new venture development. In an article he wrote in the Wall Street Journal, Lavinsky discussed the benefits of crowdfunding by stating, “Funding is the lifeblood of any small business. And it's getting tougher to find these days. Banks have become more vigilant about lending, and the vast majority of venture and angel funds are reserved for tech companies with big growth potential. The result is that far too many entrepreneurs can't start or grow their ventures—and can't provide jobs and new products and services to spur our economy. Letting small companies sell equity stakes online would be a huge boost to those firms—like angel investing on steroids. The businesses would get access to tens of millions more potential investors, and could reach out to them at little or no cost through online outlets like Facebook. Then, if the companies won funding, they'd get a built-in base of customers who were strongly motivated to help the brand succeed.” For more information, visit: http://cydec.com and their crowdfunding profile website at: www.fundable.com/cydecLinksAttachmentsQuotes"In the current environment in which banks still aren’t lending to small businesses, crowdfunding could not have come at a better time. We are hoping that potential users will see the benefit of what we offer and want to help us provide a better alternative to the marketplace."ImagesContact
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