The startup landscape has been constantly changing for some time now. Both entrepreneurs and investors are seeking success in a fast-paced environment and this can be quite a challenge. In this context, online investment platforms aim to meet everyone's needs. Of course, not all investment platform are the same, nor offer the exact same type of services. This article focuses on the main advantages and ways of operating that apply to most of them.
…if you are a potential or experienced investor
Whether you are a one-time investor or have a huge portfolio of successful investments, this type of platforms are a good option for you. That is because they can put you in touch with a large variety of startups. This variety can help an investor filter out early-stage companies which do not fit their requirements. Even the pickiest investors can scroll through investment opportunities and find something that may come close to their concept of a successful startup.
Through this online process, the middleman is replaced by an interactive interface. Through the click of a button, you can get details, see a pitch or interact with the entrepreneurs. Like any other online service, this is available at any time and can be reviewed any number of times you like. Online investment platforms usually earn their profit in the form of a commission fee for the money pitched startups get. Therefore, the professional consultants get in touch with undecided investors or with those who want any kind of assistance during the process.
In the UK, the Government offers tax reliefs to investors, but certain requirements must be met. Online investment platforms can find businesses which meet the criteria and calculate the expected money returned by the Government schemes. Moreover, they assist the investor through the whole process, giving financial consulting and helping the investor go through the whole tax relief process.
…if you are an entrepreneur
Awareness is being raised online through digital marketing tools to a broad audience. All businesses are promoted this way and the level of attention they get from the targeted audience is higher than the one they could get by themselves. The main benefit for entrepreneurs is the cost and time trimming strategy. A single platform offers marketing, consulting services and access to a vast database of people interested in being a part of the next innovation trend brought to their field.
This way, startups can focus on the development of their concept. Experienced investors can offer valuable advice and be part of the management board, while the founders focus on implementing and the concept or preparing everything for the moment their model becomes reality. Moreover, the money and time saved are vital in this stage, as it is essential for startups to act fast once they have people’s attention. If they do not make any progress, people’s focus will shift to other solution providers.
Entrepreneurs also get assistance and consulting services from investment platforms. By working together with experienced consultants, they can create a better pitch or know what aspects of their business are the most appealing to investors. Some platforms also organize events where the founders can come and meet potential investors, for a more personal experience.
Investment platforms show that in this time creating and funding innovation is much easier. If you are an investor, all you need to do is believe in the change that an idea or concept may bring. After that, the whole process of investing and following the progress of a startup is easy. If you are an entrepreneur, you can focus on what you want to create and then the investment platform will make your progress known to your target audience.