For determined entrepreneurs in California searching for business startup funding, the traditional ways of securing venture capital have proven difficult to say the least. Fortunately, social media platforms have emerged as a viable solution to those looking for funding and those looking to invest. However, finding money to support the next big idea in business is not as simple as making a post every now and then. Based on a study by the Wharton School of Business, there is a science to using social media to attract the right investor for a business opportunity.
Thanks to advances in the world of technology, the emergence of crowdfunding and peer-to-peer lending have become more common in the area of business formation and planning. Social media seems to be the driving force of these innovative online platforms, which have proven to be a successful method of a meet-and-greet between investors and entrepreneurs. The Wharton study found that activity on social media had a positive correlation with the ability to obtain funding by giving a startup the ability to share information about their plan to a large and diverse audience; it helped to eliminate many of the hardships of traditional methods.
The study concluded that startup ventures with a direct focus on social media activities attracted a larger pool of investors and were more successful in raising capital. However, it is important to choose the right method of social media marketing for each business, and it is equally important to engage with readers and provide useful and interesting content about the startup.
Starting a business and securing funding can be a dream come true for many entrepreneurs. However, this is only the beginning. Having an attorney experienced in business formation and planning as an advisor and advocate may help entrepreneurs achieve significant and lasting success.