Raising Money Differently: Crowdinvesting Strategies for Startups

Fundraising is rarely a linear process for startups. Many founders move from friends and family to angel investors, only to find themselves stuck before venture capital becomes a realistic option. In a recent Swiss Startup Association webinar, Linus Gabrielsson and Christian Klumpe Founders & Managing Directors of Conda.ch explained where crowd investing fits into this funding journey and why it has become a relevant option for growth-stage startups in Switzerland. The core message was straightforward – crowdinvesting is not an early-stage shortcut, but it can be a strong financing tool for startups that already show traction and are ready to scale.

Crowdfunding and crowdinvesting are fundamentally different

Although the terms are often used interchangeably, crowdfunding and crowd investing serve very different purposes.

• Crowdfunding usually involves donations or reward-based contributions, where supporters receive a product, a perk, or simply the satisfaction of backing a project. Financial returns are not the objective.
• Crowdinvesting, by contrast, gives investors equity or equity-like instruments in a company. Participants invest with the expectation of a potential financial return, while accepting the associated risks. 

This distinction is critical for both founders and investors when deciding which model is appropriate.

Why Conda.ch focuses on crowd investing

Access to early-stage startup investing has traditionally been limited to a narrow group of angel investors, insiders, or people with strong personal networks. Most private investors only gain access once companies are already mature.

Conda was created to change this dynamic. By enabling smaller investment tickets, the platform allows individuals to build diversified startup portfolios rather than committing all their capital to a single company. For startups, this model provides access to a broader investor base while also creating stronger engagement with supporters who become financially invested in the company’s success.

Where crowd investing fits in the startup lifecycle

Crowdinvesting is not designed for idea-stage companies or projects that exist only on paper. Most investors want to see tangible progress, such as a launched product, early customers, or initial revenue. For this reason, crowd investing typically works best after a startup has reached market entry but before it becomes attractive to larger venture capital funds. In the Swiss ecosystem, this stage often represents a funding gap. Crowdinvesting helps bridge that gap by offering capital when other options are limited.

What makes a crowd investing campaign successful

There is no single formula for success, but certain patterns appear consistently across strong campaigns. Successful startups usually present a clear and understandable business model, set realistic funding targets, and actively involve their founders throughout the campaign. An existing community that can be activated early also plays a significant role in building momentum. Crowdinvesting requires active participation. Founders who treat it as a collaborative effort with the platform, rather than a hands-off fundraising exercise, tend to achieve better outcomes.

Benefits that go beyond capital

Raising money is only one part of the value crowd investing can deliver. Many startups find that crowd investors also become loyal customers, brand advocates, and valuable sources of feedback. When tracked over time, these investors often show higher engagement and stronger referral behaviour than non-investors. Some startups also offer investor benefits, such as discounts or early access, which further strengthen this relationship and increase long-term loyalty.

Why investors choose crowdinvesting

From the investor perspective, crowdinvesting offers a way to diversify risk by spreading smaller amounts across multiple startups.This approach mirrors how professional investors operate and reduces the impact of individual company failures. At the same time, emotional factors often influence decisions. Many investors are motivated by belief in a founder, alignment with a mission, or interest in a specific industry. Crowdinvesting allows investors to combine financial reasoning with personal conviction.

Preparation is often underestimated

One of the most common mistakes startup founders make is underestimating the preparation phase. Campaign content must be adapted for an online investor audience, legal structures need to be clear, and the overall story must be communicated in a way that builds trust. This process takes time, but it directly affects campaign performance. Startups that invest properly in preparation significantly improve their chances of reaching their funding goals.

A long-term relationship with investors

Crowdinvesting does not end when the funding round closes. Investors remain on the cap table and expect regular communication. Startups that maintain transparent and consistent updates tend to build stronger trust and often succeed in raising follow-on rounds later. Several companies on Conda have already completed multiple crowdinvesting rounds by staying engaged with their investor base.

Final thought

Crowdinvesting is not suitable for every startup, but for companies with traction, a clear growth story, and a willingness to engage openly with investors, it can be a powerful funding and community-building strategy. When approached with the right expectations, it becomes more than a financing tool. It becomes part of a long-term growth journey.

Catch the full webinar replay in the Swiss Startup Association Education Library, free for members. Not a member yet? Join the community and get access to practical sessions that help you protect your business before something goes wrong.