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Customer Funding

Companies with access to their consumers have a secret fundraising asset – a uniquely motivated investor pool right under their noses…
…their customers.

With satisfied customers, an exciting story, and the potential for growth, a company’s ability to attract capital goes up dramatically.

Here’s why:
  • Your customers already know and trust your company and your product. Your company already holds a high level of credibility that has demonstrably proven translation to investor receptivity in your investment.
  • Investors want to be on the inside track of companies with new and exciting growth prospects because they know that these opportunities create maximum profit. Giving your customers first rights to invest in your company, before others can, creates an exclusive and enticing insider privilege many find irresistible.
  • Customers want to invest in a company they like, as in the Ben & Jerry’s story.
  • Customers can now use their IRA to invest in private companies. This frees up huge sums of untapped capital, ripe for investing in great opportunities.
The Benefits of Customer Funding:
  • It’s a quick path to funding. First funds are often received within 60 days.
  • You can use royalty financing where you don’t give up ownership of the company. Instead, investors receive a percentage of future revenues for a limited period of time.
  • You stay in control of your company, retaining far more ownership than when you raise capital through angel investors or VCs.
  • There are NO loans to pay off or additional bank debt.
Other information about customer funding
  • Customer Funding is a method for using your customers as a source of funding. This gives your company an enthusiastic pool of potential investors, and it gives your customers an opportunity to participate in your success.
  • It is based on the investment principle that people prefer to invest in companies whose products or services they know and trust.
  • This built-in credibility is unrecognized and unappreciated by most companies as a source of funding.
  • Thousands of companies like yours have accessed their customer base as a way to successfully fund their businesses.
Affinity and Cause-Based Investors
  • There are two special categories of customers that are even more receptive to investing. These are affinity and cause-based investors.
  • An affinity investor is someone who is not just “satisfied” with a company’s products or services, but is enthusiastic and passionate about them.
  • A cause-based investor is inspired by a company’s statement in the world, a statement that lives through their products, services, or mission. The higher good is not neglected for the bottom line.
  • Both of these types of customers are highly receptive investors, and once a funding campaign is settled upon, first funds are often received within 60 days.

For more details on Cause and Affinity Investors click here