All about Crowdfunding

Crowd funding is becoming popular these days as it is very interesting and innovative idea of raising money. Basically, Crowdfunding is the process of raising money to fund a business venture or aproject through many donors using an online platform. The fundraising window is usually finite, sometimes may be 90 days and also the fees and rules vary across various platforms.

This process of crowdfunding is actuallyexecuted through an online website that allows the fundraiser to set up a public campaign for accepting donations.

Now, the campaign will promote and advertise details such as the nature and scope of the project or venture, the approximate amount of money the company is targeting to raise and the fundraising deadline dates. You can donate a specified amount through the fundraising campaign’s website and good chances are that you may receive some sort of reward oracknowledgement in return for the donation that you make.

·         Such an initiative of raising money can benefit you in number of ways.

·         You can use crowdfunding to validate your ideas before they are fully realized. Remember that People don’t want to support a campaign that’s not going to work.

·         Before launching a fundraising campaign, you can build up interest in your project or your business.

·         With a solid fan base, your campaign will get off to a fantastic start.

The scope of such money raising can range from educational and charitable projects to creative projects like funding films as well as some businesses. Crowdfunding platforms each tend to cater to specific categories, such as some companies which focus on creative projects or an equity-based platform which could be utilized for businesses looking to generate investment capital. 

On the other side of the crow funding coin, many entrepreneurs and startup founders are in bigfavor of this new investing concept due to its ability to create greater accessible capital and allow for starters with ideas to make them into reality. Many people believe that crowdfunding will be the way of the future, and is the next step in evolution for small businesses.

Crowdfundingis definitely going to be one of the most talked about and controversial subjects in technology over the next few months, here are a few facts that should throwsome more light on crowdfunding:

·         So fundamentally, there are three models of crowdfunding – Donations, Lending, and Investment

·         High speed internet, online workforce, and online international payments actually gave birth to crowdfunding

·         Half of the sites that use crowd funding are for creative purposes, not social or business for the most part

·         The biggest crowdfunding platforms are located in the United States and the UK

·         And also statistically, 2011 has seen the highest number of crowdfunding websites launched ever (67 sites compared to in 2007 when only 19 sites were launched).\

In the conclusion, there’s no way of guaranteeing successful crowdfunding, but by studying the projects, strategies, and crowdfunding secrets that have worked for others, you can certainly maximize your chances.

Visit us: crowdfunding news

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Created on Dec 31st 1969 18:00. Viewed 0 times.

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