{"id":305,"date":"2016-12-20T16:47:10","date_gmt":"2016-12-20T16:47:10","guid":{"rendered":"https:\/\/crowdforangels.com\/blog\/?p=305"},"modified":"2019-11-15T15:15:33","modified_gmt":"2019-11-15T15:15:33","slug":"starting-isnt-start","status":"publish","type":"post","link":"https:\/\/crowdforangels.com\/blog\/starting-isnt-start\/","title":{"rendered":"Why Starting Up is Different to Being a Start-Up"},"content":{"rendered":"

\"Start-Up<\/p>\n

One of the things that put investors off crowdfunding sites is the sense that the companies they\u2019re being asked to invest in aren\u2019t all there yet \u2013 are you really investing in an up and running company, or is it only someone\u2019s idea that\u2019s still just on paper? This is why we need to be clear about the difference between starting up and being a start-up \u2013 if the directors haven\u2019t properly prepared themselves or their business plan, or they don\u2019t already have a functioning company which is turning a profit, they\u2019re not a start-up yet. Start-ups are companies which are already in business and poised to expand quickly, especially with the help of equity crowdfunding or debt crowdfunding \u2013 let\u2019s have a closer look at how investors can be more confident about what they\u2019re investing in and be sure it\u2019s one of the smartest ways to make money.<\/p>\n

Have they prepared a serious business plan?<\/strong><\/h3>\n

Do they know what their target market is? Do they know what their potential for growth is? Do they know where they want to be in 12 months? Most importantly, can they answer these questions with detailed figures? This is the first thing that distinguishes a start-up from an idea written on the back of an envelope \u2013 unless pitchers have thought seriously about their business plan, they aren\u2019t a viable option for investment yet. And they don\u2019t just have to have answers to these questions \u2013 they need to be realistic if they\u2019re seeking equity crowdfunding. It\u2019s often only when an entrepreneur actually starts running a business that they lose the overambitious predictions they\u2019ve been giving themselves. But it\u2019s no good having a hard valuation figure if it\u2019s wildly overinflated \u2013 a business plan needs to show realistic expectations or else you can\u2019t believe they\u2019re taking their business seriously, which means they certainly can\u2019t expect to receive any equity crowdfunding.<\/p>\n

Are they already operating as a business?<\/strong><\/h3>\n

If they\u2019re registered at Companies House and already turning a profit, that\u2019s a good sign \u2013 but if not, they\u2019re just starting up. That doesn\u2019t mean they haven\u2019t thought seriously about where they\u2019re going and what they have to do, but if they haven\u2019t gotten to the stage of actually operating as a business then you\u2019re not investing in a company \u2013 you\u2019re investing in someone with an idea. Whether or not that idea is brilliant, you have to carefully distinguish between functioning start-ups and nascent pre-start-ups \u2013 at Crowd for Angels we check that all companies pitching on our platform are registered at Companies House and have filed up to date accounts. We do this so that you know that everything you invest through our platform is an actually operating company, not just someone\u2019s great idea.<\/p>\n

Don\u2019t get put off crowdfunding sites just because certain websites don\u2019t ensure all the proper checks and safeguards are in place. At Crowd for Angels, we follow a stringent three-step checking procedure which involves fact-checking every part of each pitch<\/a>, down to the smallest detail. We also meet 99% of our company directors in person, ensure legitimacy at every stage, and we are completely FCA regulated.<\/p>\n

At Crowd for Angels<\/a> we have high standards for what gets on our platform, and it means more than coming up with a good idea. Crowdfunding investment ought to be in real companies \u2013 which is why we make sure to distinguish between the genuine start-ups and those who are just starting up.<\/p>\n","protected":false},"excerpt":{"rendered":"

One of the things that put investors off crowdfunding sites is the sense that the companies they\u2019re being asked to invest in aren\u2019t all there yet \u2013 are you really investing in an up and running company, or is it only someone\u2019s idea that\u2019s still just on paper? This is why we need to be […]<\/p>\n","protected":false},"author":3,"featured_media":306,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[69],"tags":[373,372,371],"yoast_head":"\nWhy Starting Up isn't the Same as Being a Start-Up<\/title>\n<meta name=\"description\" content=\"You may be put off crowdfunding investment because of worries that you're not investing in real companies, just an idea - here's how to tell the difference\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/crowdforangels.com\/blog\/starting-isnt-start\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Why Starting Up isn't the Same as Being a Start-Up\" \/>\n<meta property=\"og:description\" content=\"You may be put off crowdfunding investment because of worries that you're not investing in real companies, just an idea - 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