The Danish Startup Ecosystem Guide 2024 - Magazine - Page 47
Get customers and
investment while you develop
your product
Crowdfunding is a method of raising capital for startups through small contributions from
a large number of people - even before the product is finished.
projects for 10,000 kroner to multi-million dollar ownership deals.
Regardless of the method, crowdfunding offers a unique opportunity: it
provides access to a large pool of potential
investors. This can be particularly valuable for startups that don’t have access
to traditional funding sources such as
venture capital. Furthermore, crowdfunding allows startups to validate their product or service by gauging early market
interest and demand.
D
anes and Danish companies
raised DKK 300 million via
crowdfunding in 2021, typically
through online platforms such
as Kickstarter, Seedrs or Boomerang.dk.
These platforms allow the crowd to support a variety of projects. The reward for
Powered by TechSavvy & Heyfunding
investing can be a product, ownership in
the business or a 昀椀xed return on investment as a loan.
While the most common form is
reward-based crowdfunding, the method
has evolved in many directions. Today,
it is used for everything from small test
A possible rocket start
Crowdfunding can be a way for startups to build a community around their
product or service while raising capital.
By engaging with many small investors
(sometimes thousands) and sharing
their stories, startups can create a loyal
fan base that can help drive future
growth.
The start of the growth journey can be
explosive if a startup manages to sell its
昀椀rst million dollars worth of products before the company has even been properly
launched.
Ironically, such success can also lead
to the downfall of the startup before it
even gets started; if it fails to deliver on an
overly successful campaign that exceeds
its production capacity, it can be fatal. Just
search for ”Coolest Cooler.”
There are different types of crowdfunding that can be tailored to meet the speci昀椀c needs of different types of startups
and projects. By choosing the right type
of crowdfunding and developing a strong
strategy, startups can use methods to
access the resources they need to grow
and succeed.
47