Crowdfunding entails reaching out to a large number of investors and helping them invest small amounts in your new business. It focuses on the concept of democratization — no longer do businesses have to rely on larger, powerful VC’s for investment! The idea is that if many interested folks are asked for relatively small amounts as an investment , it gets easier to reach the desired goal for the capital needed to fund your expansion plans and take your business to the next level. Crowdfunding has proven to work particularly well as you get to ask also market your idea to potential customers /interested stakeholders. The funds and awareness raised through crowdfunding help gauge how popular the idea would be upon completion and have investors who can help with their network/ support /credibility.
Crowdfunding in an HR tech startup
One of the biggest advantages of Crowdfunding most applicable to HR than any other function is that it offers more than just capital that a startup needs to boost its growth. It also introduces startups to a large number of experts who are interested in transforming the traditional way HR functions in organizations. This could mean more financial aid or services and skills that startups could find useful for their business.
What’s in it for the investors?
The investors, or the “Crowd” in Crowdfunding, have a lot to gain from such a construct. They get to spread the risk that comes with any investment, and instead of putting all their eggs in one basket, they now have the opportunity of investing in multiple opportunities in varying capacities. What’s more, the research that they do around any proposition ensures they are well informed around Digital Disruption around the workplace and are far better equipped around managing the changes happening around it.
How does the HR Tech Partnership contribute to Start-ups in the People Tech Area:
The HRTP (HR Tech Partnership) is unique in a number of ways. Firstly, its focus is purely on the Human Capital space. It looks at innovative digital solutions using AI and other cutting edge technologies around Workforce Planning, Resourcing, Talent, Learning & Development, Employee Engagement, Reward & Benefits, and Wellness, etc. Secondly, all members are domain experts in the people area and along with funds bring their expertise and successful corporate background to the table. Thirdly, The HR Tech Partnership combines the benefits of both seed funding and crowdfunding, enabling regular professionals to benefit from specific deals. This brings a huge advantage to any startup — credibility from a group of respected professionals, access to their network, visibility to a potential customer base and the ability to scale up to more rapidly.
To know more about Crowdfunding and how you can participate, register your interest and visit us at — www.hrtechpartnership.com
