VOICE - Digital Finance & Funding Basics for Entrepreneurs

Digital Finance & Funding Basics for Entrepreneurs

Funding options: business angels & crowdfunding

Objective and goals

At the end of this course, you will be able to:

understand informal financing options (Business Angels, donors, crowdfunding)
select the right digital tools to support crowdfunding & promotion
design, launch, and manage a crowdfunding campaign from start to finish
strengthen customer communication and engagement through responsible online behaviour
improve online visibility while reducing risks, fraud concerns, or campaign failure

Learning outcomes

At the end of this module you will:

understand how crowdfunding works and when it is a suitable financing tool
identify the pros, cons, risks, and strategic considerations of launching a crowdfunding campaign
select the most suitable social media platforms based on your target audience and content type
improve customer engagement through responsible online interaction and fast response strategies
evaluate which informal financing tool (business angels, donors, crowdfunding) best fits your project
identify the benefits, risks, and limitations of different crowdfunding types
build a simple digital communication plan using visuals, stories, and consistent posting
communicate clearly with supporters and manage post-campaign responsibilities

At the end of this module you will gain:

digital marketing skills: content creation, visual storytelling, blog use, hashtag strategy
crowdfunding campaign management skills: planning, promoting, launching, and maintaining a campaign
communication & engagement skills: responding to users, handling feedback, improving customer experience
risk awareness & evaluation: recognising reputation risk, intellectual property issues, safe platforms and campaign failure risk
brand promotion & awareness skills: using visuals, contests, influencers, and community-building tactics
basic digital analytical skills: monitoring posts, trends, interactions, and competitors’ approaches
entrepreneurial & Strategic Skills: selecting suitable financing tools, understanding early-stage investment logic, planning for growth and scalability

Business Angels – who they are

Business Angels are known in the USA as Angel Investors or only Angels, in reference to the entrepreneurs who supported Broadway theatre productions at the beginning of the 20th century.

Informal financing is any form of financing in which the financial system is not directly involved, an example are Business Angels who are:
Private individuals who invest their own money in small or new businesses.
Usually experienced entrepreneurs or managers.
They support with money and advice. Business Angels play a crucial role in creating innovative companies by supporting entrepreneurs in the early stages of their companies' life cycle (seed and start-up).
They help businesses grow in the early stages.

What Business Angels usually do?

INVEST
Their own money in new businesses.

SUPPORT
Founders with advice and contacts.

PREFER SMALL COMPANIES IN EARLY STAGES
With growth potential with no direct relation.

OFTEN INVEST IN SECTORS THEY KNOW WELL.
On average they invest between 25-100K€

BRING VALUE
And be involved in the Business financially and in decision taking.

TEND TO MAINTAIN THEIR ANONYMITY
Although many recognized business angels are public figures.

What investors/Business Angels look for?

a clear business idea (preferably in the technology sector) and simple plan, commercial and financial viability (profitability)
a team that can manage the project
potential of the partners and promoters of the idea
how the money will be used
if the business can grow in the future

Business Angels – their pros and cons

ADVANTAGES

you don’t repay the money if the business fails
you receive advice and contacts

DISADVANTAGES

you share ownership of your business
the investor may influence decisions

EXAMPLE: A WOMAN RUNNING A SMALL CATERING SERVICE MAY PREFER A MICRO-LOAN INSTEAD OF GIVING OWNERSHIP TO AN INVESTOR.

Crowdfunding: what it is

Crowdfunding is similar to the business angel system but differs in two main aspects, it seeks a massive investment from small individual contributions and relies on ICT for fundraising.

In crowdfunding:
Many people give small amounts of money to support a business idea.
You can offer rewards (e.g., early access, small gifts).

Examples of platforms: Kickstarter, GoFundMe, Ulule, Zrzutka.pl.

Types of crowdfunding

REWARDS-BASED CROWDFUNDING
Individuals lend small amounts of money to a project in exchange for a reward or incentive.

EQUITY-BASED CROWDFUNDING
An investor receives a portion of the company in return for their investment.

DONATION-BASED CROWDFUNDING
A large number of individuals donate a small amount of money toward a project, contributors don’t expect anything in return.

DEBT-BASED CROWDFUNDING
A large amount of individuals lend a small amount, with the expectation that they will be paid back the principal along with interest.

What are the benefits and challenges of crowdfunding?

ADVANTAGES

you test interest in your idea
you don’t give away ownership and take less risks
you build a community of customers/advisors and improve marketing efforts.

CHALLENGES

requires time to promote the campaign
no guarantee of reaching the target
your reputation could take a serious hit if your project fails or falls through
all or nothing: if you can't reach your goal you leave empty-handed, only a fraction of crowdfunding campaigns meet their desired goals
some individuals might steal your idea and build a better version (or simply market it more successfully)

Plan your campaign step by step

DEFINE YOUR GOAL
How much money do you need and why?

CREATE A SIMPLE STORY
Explain who you are and what you want to achieve.

PREPARE PHOTOS/VIDEOS
Show your product or idea.

CHOOSE YOUR REWARDS (IF USED)

DECIDE HOW LONG THE CAMPAIGN WILL RUN (USUALLY 30 DAYS)

SHARE IT
On social media, with friends, community groups.

Before...

SPEND TIME GETTING TO KNOW YOUR PROJECT
Its main characteristics, its viability and its possible profitability.

EXPERIMENT WITH CROWDFUNDING
Participate in a campaign as a donor to learn about the donor's experience and think about how to improve it.

FINANCING
Your objective is to achieve 100% of the necessary financing, but you have to establish the minimum amount of financing required for your project to be viable

PLATFORM
As we will see in this course there are many crowdfunding platforms, to choose yours, analyse the commissions (normally between 5% and 8%), the security of payments for the patrons and whether the platform offers additional promotional services or the possibility of contacting the patrons.

DURATION
A longer campaign doesn't have to be better, think that the longer the campaign is active the more maintenance it will need. The time needed for the launch is usually one or two months, and the duration of the campaign usually reaches five or six months.

During...

THE LAUNCH

To successfully launch your campaign, the most important thing is to convey your business idea in an optimal way and be able to encourage donors to participate.

A GOOD STORY TO ENGAGE INVESTORS

You Have to be able to tell a good story so that potential investors can somehow identify with it. That way they will remember it and be more inclined to donate. Experts recommend a storytelling format told in the second person, as it facilitates empathy.

USE THE VIDEO AS YOUR ALLY

Create a quality video for storytelling and for the presentation of your product. If necessary, seek professional help.

In addition to using optimal packaging, you should have a good product. Spend time preparing a good description of your product analysing its characteristics, why it is necessary for society and the advantages it will bring to donors.

CLARITY CONVEYS CONFIDENCE

One of the enemies of your campaign will be mistrust and fear of fraud. To overcome this, you must highlight your merits, the benefits of your product and be very clear about the viability of the project, the deadlines and the amount of money you are requesting.

WHAT WE OFFER IN RETURN

In addition to contributing to the launch of a successful product, our donors usually expect to receive something in return, products, or participation in the company.

YOU SHOULD OFFER AN ATTRACTIVE REWARD TO ENCOURAGE PARTICIPATION.
A VIABLE REWARD TO AVOID FUTURE PROBLEMS.

Using social media to promote your campaign

Share your story on platforms your community uses:

Instagram – photos, short videos
Facebook – groups, local communities
Telegram / Viber – popular among Ukrainians
TikTok – short creative videos (optional)

Tips:

use clear photos
explain what the campaign will do
post updates regularly
say thank you to supporters

After...

I REACHED THE GOAL

NOW WHAT?

If you have followed all these steps and have been consistent, your initiative may have achieved the necessary funding. What to do next?

THE POST-CAMPAIGN IS A FUNDAMENTAL STEP

Keep in mind that funding is only the first step in getting your product to market and angry donors can create a smear from which you and your product could not recover.

The key is communication, clearly transmitting the success of the campaign, thanking the collaborators and indicating the deadlines and the way to receive the reward to the investors.

Avoid these common mistakes:

setting a goal that is too high
not explaining clearly how funds will be used
poor-quality photos or no video
not promoting the campaign regularly
forgetting to update supporters

How to increase your chances of success

share a real, honest story
show your work with photos or short videos
ask friends and community members to share your campaign
offer simple, meaningful rewards
keep communicating during and after the campaign

Example: hand-made candles microbusiness

A Ukrainian woman in Milan wants to buy equipment to scale her candle-making activity.

She launches a reward-based crowdfunding campaign:
Goal: €1,000
Rewards: small candle, large candle, personalized label
Promotion: Instagram, Telegram local groups
Outcome: reaches goal in 20 days thanks to community support

Popular crowdfunding platforms (country-friendly):

GoFundMe https://www.gofundme.com/ – donations
Kickstarter https://www.kickstarter.com/ – creative projects
Indiegogo https://www.indiegogo.com/ – products & start-ups
Zrzutka.pl https://zrzutka.pl/ (Poland)
Produzioni dal Basso https://www.produzionidalbasso.com/ (Italy)
Goteo.org https://www.goteo.org/ (Spain)

USE OFFICIAL, WELL-KNOWN PLATFORMS. AVOID SHARING UNNECESSARY PERSONAL DETAILS.

Example: online tutoring project

A young refugee tutor offers online Ukrainian–English lessons for children.

Crowdfunding goal: €600 to purchase a microphone, lighting, and software.
Platform: GoFundMe.
Promotion: Facebook groups for parents, school communities.
Result: 45 supporters in 3 weeks; equipment purchased; business launched.

Exercise

Apply what you learned about crowdfunding and Business Angels by designing a mini plan for your own project.

1.   Write a brief description (2–3 sentences) of a business idea you would like to fund. Include what problem it solves or what value it brings.
2.   Decide whether you would approach a Business Angel or use crowdfunding. Explain why.
3.   Determine a realistic funding goal and describe how you would use the funds.
4.   Outline a short story or message to share with potential investors or donors. Specify which social media platforms you would use and why.
5.   Reflection Questions:

What challenges do you anticipate in raising funds?
How could you build trust and engage your audience?
What is one step you will take this week to start preparing your campaign?

Deliverable: A 1-page written plan including your idea, funding strategy, story, promotion, and reflections.

Summary

Key things to remember:

entrepreneurs can access informal financing tools such as Business Angels and Crowdfunding, each offering different levels of support, risk, and ownership impact
successful fundraising requires clear communication, a compelling story, and strong online visibility
crowdfunding is both a financing tool and a marketing tool — it tests your idea, builds community, and validates market interest
digital communication, especially through social media, is essential for promoting a campaign and engaging supporters
choosing the right ICT tools, platforms, visuals, and messaging significantly increase the chances of reaching your funding goal

Today you learned:

1. The difference between Business Angels and Crowdfunding, and when each is suitable.
2. Plan, prepare and launch a crowdfunding campaign, step by step.
3. Evaluate the benefits, risks, and challenges of informal financing options.
4. Communicate your business idea clearly using storytelling, visuals, and social media.
5. Choose the right platform, timeline, rewards, and promotional strategy for your campaign.
6. Maintain customer trust through transparency, updates, and realistic goals.

Glossary

BUSINESS ANGEL
A private individual who invests their own money in small or new businesses, often providing advice, contacts, and guidance in addition to financial support.

CROWDFUNDING
A method of raising funds for a business or project by collecting small amounts of money from a large number of people, usually via online platforms.

EQUITY-BASED CROWDFUNDING
A type of crowdfunding in which investors receive a portion of the company in return for their financial contribution.

REWARDS-BASED CROWDFUNDING
A crowdfunding model where contributors support a project in exchange for a reward or incentive, rather than ownership in the company.

SEED STAGE
The early phase of a company’s life cycle when the business idea is developed, and initial funding (often from Business Angels) is used to start operations and test viability.

take the test

Related Case Study: "Santamanía "

Objectives & Goals

At the end of this course, you will be able to:

Understand informal financing options (Business Angels, donors, crowdfunding).
Select the right digital tools to support crowdfunding & promotion.
Design, launch, and manage a crowdfunding campaign from start to finish.
Strengthen customer communication and engagement through responsible online behaviour.
Improve online visibility while reducing risks, fraud concerns, or campaign failure.

Learning Outcomes & Skills

At the end of this module, you will:

Understand how crowdfunding works and when it is a suitable financing tool.
Identify the pros, cons, risks, and strategic considerations of launching a crowdfunding campaign.
Select the most suitable social media platforms based on your target audience and content type.
Improve customer engagement through responsible online interaction and fast response strategies.
Evaluate which informal financing tool (business angels, donors, crowdfunding) best fits your project.
Identify the benefits, risks, and limitations of different crowdfunding types.
Build a simple digital communication plan using visuals, stories, and consistent posting.
Communicate clearly with supporters and manage post-campaign responsibilities.

At the end of this module, you will gain:

Digital marketing skills: content creation, visual storytelling, blog use, hashtag strategy.
Crowdfunding campaign management skills: planning, promoting, launching, and maintaining a campaign.
Communication & engagement skills: responding to users, handling feedback, improving customer experience.
Risk awareness & evaluation: recognising reputation risk, intellectual property issues, safe platforms and campaign failure risk.
Brand promotion & awareness skills: using visuals, contests, influencers, and community-building tactics.
Basic digital analytical skills: monitoring posts, trends, interactions, and competitors’ approaches.
Entrepreneurial & Strategic Skills: Selecting suitable financing tools, understanding early-stage investment logic, planning for growth and scalability

Description

This module introduces entrepreneurs to informal financing options, including Business Angels and crowdfunding. Participants learn how to plan, launch, and manage funding campaigns, evaluate risks and benefits, and communicate their business ideas effectively.

This course builds on a previously piloted and successful training programme developed within the DEEP project, which has been further adapted and improved for the current context.

Keywords

Business AngelsCrowdfundingStartupFundingDigital Finance

Bibliography

Mason, C., & Harrison, R. (2020). Entrepreneurial Finance: A Practical Guide for Founders and Investors. Palgrave Macmillan.

Belleflamme, P., Lambert, T., & Schwienbacher, A. (2014). Crowdfunding: Tapping the Right Crowd. Elsevier.

Mollick, E. (2014). The Dynamics of Crowdfunding: An Exploratory Study. Journal of Business Venturing (articolo di riferimento accademico frequentemente citato in testi di crowdfunding).

BBVA (2015). Spanish startups rely on equity crowdfunding. BBVA Innovation Report (analisi sul mercato del crowdfunding in Spagna). NEWS BBVA

OECD (2016). Crowdfunding success: The case of Kiva.org – IESE Business School working paper (analizza modelli di crowdfunding e fattori di successo). iese.edu