A crowdfunding forum in Fredericton Wednesday was showing entrepreneurs how to take their business ideas to the next level.
Peter McMath created Timbre Cases, a company allowing people to preorder their product before it existed.
“Our goal was to raise roughly $30,000 in 30 days,” said McMath.
He credits crowdfunding for helping him get there.
“And really validate that we were on the right track to have people invest in a product that's not quite real yet, not quite finished,” said McMath.
Timbre Cases was just one example given at the forum.
Ten years ago, no one had heard of crowdfunding. Now, it’s a widely accepted way of financing upcoming projects.
“(There were) all kinds of interesting discussions on how companies can find different ways to raise money for their business,” said Jeff Harriman of New Brunswick Financial and Consumer Services Commission.
George Rohac of Breadpig Inc. is based in Brooklyn, N.B., and helps other companies achieve their crowdfunding goals.
“It's essentially another job and that's why we exist,” said Rohac.
McMath says there are many misconceptions about crowdfunding.
“The big misconception is that if you build it they will come. You know there hidden costs to produce your video, the content, the marketing and advertising behind the campaign,” said McMath.
Another misconception is that crowdfunding is free money. There are examples of companies having to pay the money back for not delivering on what they promised.
“You are committed to delivering what you said you would to the community that gives you money,” said Rohac.
It’s a risky venture if not done correctly.
“It's not necessarily the best method for everybody but definitely worth exploring,” said McMath.
With files from CTV Atlantic’s Nick Moore.
