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Crowdfunding has turned into an essential form of seeking funds to get things going for your project. Be it a business or any other venture, crowdfunding stands to work, provided you convince people of the benefits that it can provide. But for that to work, you also require a website through which you can talk about your project and expand on the requirements of finances. So to help you get started, here are a few of the most essential features that need to be included in your crowdfunding website.
The Ideal User Experience
Websites that offer the best user experience are bound to be the one that everyone looks out for. If your website helps people complete their tasks with ease, then everyone will fall in love with it and move ahead to place some form of trust in you. Since that is a significant requirement for funds, you need to develop a website that offers a good user experience. People should be able to sign up, access the features, and do a lot more without coming across problems.
Having the right payment methods is by far one among the most essential aspects of a crowdfunding website. It needs to be a part of the system, and one cannot make compromises in this regard. So look into the top payments and include the ones that the market looks out for. To make this process easy, one should look into market trends and pick out the method that people can’t stop talking about. So what are you waiting for? Go ahead and get to work right away.
As a crowdfunding website, you are bound to provide people with information regarding accounts and other finance-related matters. Due to that, investment charts, recharge, withdrawals, transaction records, and other aspects need to be a part of the game. Apart from including that, the presentation should also be convincing because you are trying to get more funds. As a result, the setup needs proper account management, and there are no exceptions on this note.
Creating a unique form of appeal in the minds of visitors is another simple feature that goes a long way in promoting things that happen for good. While one may disregard the same as irrelevant, you should always understand the kind of benefits you will miss in case you do so. Due to that, get hold of the right developers and begin to create a unique design that blends well with your website and creates an image of what to expect.
Hence, understand these features and look towards methods to further develop your website and get people to invest.
A new business idea takes a lot of effort to find the right investment in the financial market. While getting funds has now become much easier than two decades ago, it is still difficult to accomplish unless you are determined to reach your goals. When you believe in your idea and have done enough research and planning to make it work, you need to build a presentation that covers all aspects of your business idea. Once everything is in place, and all you need now is the right investment, these are options you have to find funds for your business.
Bootstrapping is the easiest way to launch a small business. As an individual, you can use your credit card or savings to establish your business. Your goal should be to use your own money to introduce the product in the market and then recover your investments through the revenue generated. You will not need an investor for your business and will be free from any equity or debt. However, when you are using your own investment, you will need to make sacrifices in other finances, or your business can face a possible lack of capital and cash flow.
Crowdfunding is a modern solution for new and old businesses to find funds in the market without going to banks. You can choose from one of the crowdfunding platforms and pitch your idea or product in front of the investors. The investors can support your business by funding your campaign in return or rewards, interests, or equity. You do not need financial security to access crowdfunding, but just a good idea and a neat presentation. You need to plan your crowdfunding campaign properly as it will cost you money to make presentations and advertise your product before you receive the funds.
Angel investors and venture capital investors
Angel investors are the people who invest in businesses in their early stages of growth. These investors can be a family friend or someone who just happens to find your idea interesting. You can also approach angel investors and request a fund that your company will need. The venture capital investors wait for an experienced angel investor to fund a company, so they are assured of the company’s reliability. These investors expect large parts of equity in the business, which reduces the shares for the founders. One should be careful in discussing equity with angel investors and venture capital investors.
Seed funding is another choice for new businesses to find fundings. In this method, the initial investment for a startup is made in exchange for equity. It is done at the very beginning of the business so that the business gets a head start and experience quick growth. When the business has grown enough to generate its own profits, it can repay the seed funds to take back the equity.
Crowdfunding is a modern approach for new businesses to find investors who ready to put faith and money into their new business idea. It has revolutionized the financial market by giving a chance for business ideas that did not have the financial security to apply for loans at the banks. Several online platforms use different models of crowdfunding to gather entrepreneurs and investors in one place. Many businesses have successfully received the funding to launch their products in the market. However, not every crowdfunding campaign ends up reaching their funding goals.
There are still many crowdfunding failures that can become a problem for the new businesses that are genuinely trying to raise funds. The frauds, failure to complete the project, and slow functioning, have resulted in the demise of the funding campaigns for many companies. That is why you need these key strategies to help your crowdfunding campaign reach its mark.
The basic step to start any campaign or project is to have enough research material to make effective decisions in the future. Learn everything about crowdfunding and find out which method will suit your business or product the best.
Find a platform
There are plenty of platforms available today that offer crowdfunding with different goal limits. Consider the parameters of your product and find a platform where you are confident in reaching a crowdfunding goal. If you do not fulfill the goal of your fund, you will not receive any of the money.
Share your idea
Let the investors know what you are sharing with them. If you are pitching a product, you must create a presentation with a prototype is possible to let the investors know what they are in for. There have been cases like the Star Citizen video game. The team pitched the idea to complete its crowdfunding goal when the game was not even coded.
Create marketing materials
You need to promote your idea in more than just the crowdfunding platform. This will help you create statistics to show the investors how the public is reacting to your product or idea. Create high-quality marketing content, so the audience automatically accepts your message. At the same time, avoid being too desperate or cheesy and present only what suits your project.
Create your goals
You cannot start a crowdfunding campaign without deciding the deadline for it. You must decide what your total fund should reach up to and also a date when you will close your campaign no matter what. Having a deadline will keep the pressure on that will keep your project running until you accomplish your goals.
Create impressive rewards
The reward system in crowdfunding offers rewards to the investors in return for their fund. Have a team discussion to decide what you can plan as a reward for your investors. The reward should be worthwhile and make the investors feel profitable. While a thank you note will seem like a nice gesture, a discount on your product will motivate them more.
Crowdfunding is a modern financial resource for new businesses today that lack the right assets to apply for a loan through any of the traditional methods. Crowdfunding is popularly known as tribe building, where a new business shares their idea and prototype with a myriad of investors who are available to provide support to good ideas.
Crowdfunding is a revolutionary step in financial history that has given a new meaning to funding. It has changed the way a small business can approach funding by creating a platform where good ideas can meet good investors. The start-ups, individuals, and big companies can raise funds for their projects without having to approach a bank. The process of crowdfunding is pretty easy. When an individual or a business has an idea that can change society, it is presented as it is to society through a platform. The crowdfunding community of investors then decide where they want to invest based on rewards or returns.
Models of crowdfunding
Due to the growing popularity of crowdfunding, many individuals and businesses have switched from applying at banks to choosing online crowdfunding platforms. Crowdfunding does not work like traditional funding methods and does not offer any financial returns to the investors. Instead, it has its own models for rewarding the investors.
Reward – When the investors pledge for a project and fund it, the borrower promises a list of rewards to every investor. This is a commonly used model in platforms like Kickstarter and Indiegogo. The investors do not receive any returns or equity in the business they invest in. Instead, they receive a new product from the company at a discount or with an intrinsic value.
Donation – This model is generally used by NGOs and community groups that are working for a cause. The participants who invest in such programs are simply volunteers who do not expect any returns or rewards. Justgiving is an example of such a platform that hosts projects of individuals and groups that need donations to work for their cause.
Equity – Another common funding method involves equity given to the investor on making a deposit in the business. The investors receive shares of the company upon investing and is a regulated activity. Since most of the business that needs funds are new, having equity is riskier than the debt model. However, there are several tax advantages for investors to choose the equity model and can receive long term profits if the business takes off.
As crowdfunding is gaining popularity, many startups are coming up to help raise funds for themselves. This is a platform where everything is getting more and more competitive. There are thousands of portal sites which will allow you to have the right kickstart to your feature which can easily put you trouble. There is a lot that you can do to help optimise your campaign for success, which involves certain techniques, strategies and crowdfunding secrets which will allow you to have the best chance at meeting your goals.
When you are crowdfunding, you need to make sure that you validate all your ideas which will allow you to become fully realised, as the campaign comes half baked you need to make sure that you have the right idea which will allow you to invest right. It is important to note that people can easily back a campaign which is not going to work. If you have a proper idea which is executed right, you can easily learn you flesh out your ideas.
Strategic social media
It is important that you understand different ways you can reach social media. With wider reach, you have better chances at winning the right business match you marketing and content strategy. Try to make sure that you have the right customisation which will allow you to customise your promotions as well. This will allow you to target the audience which suits you industry and platform.
Produce a great video
Video clips can give visitors a better idea of getting yourself the right project. This is one of the best ways to ensure that you have the right access, which will allow you more exposure. It requires a lot of time, resources and expertise which is required to get the right looking video which will allow you to have the right campaign credibility.
Create a media page
There are many popular crowdfunding projects which are covered in the press who have a solid website and press material. This is one of the best ways to bring your project into the right limelight of the people who are interested in investing. You can insert a high-resolution picture, which can illustrate the right features that can also choose to promote different projects. You can also make sure that you have the right press your which will allow you to have the right crowdfunding element.
Do not immediately ask for money
Try to make sure that start you start off by telling your story and enthusiasm, which will allow you to gain their trust and support naturally. The supporters can easily give you money while expecting certain things in return on their investment. This is one of the best ways to turn your physical product into emergency relief operations.
It is important that you, as an entrepreneur, understand the importance of crowdfunding which in both terms, are helpful when it comes to financial and human resources. Crowdfunding is one of the popular ways for startups to raise funds quickly. Crowdfunding is not as easy as it seems as if you fail to impress the funders, you might not have enough funds. But getting prepared beforehand is one of the best ways to ensure that you can go ahead. In this article, we are going to discussing some of the best ways you can increase the chances of the finds coming your way.
Check if crowdfunding is right for you
It is important that before you opt for crowdfunding, you understand the costs that go into it, both human and financial resources. Crowdfunding is a lot of work and expects to invest in time and money, which will allow you to create a successful campaign. If you are in an industry which is a high risk, there is a chance that you might fail and no fund will be raised.
Planning is one of the best and the most difficult part of crowdfunding. Planning allows you to have the right reaction, which will allow you to meet the criteria for the lucky ones which can go viral.
It is important that you plan each day and dedicate a certain amount of attention towards it. This is one of the best ways to help manage the crowdfunding campaigns once it goes live.
Consider the little things
After you have gone live, there are certain things which will allow you to gain more fund, which includes things like answering phones, mails, etc. This will allow you to answer any questions the people might have about your business model and project. Time is also money where you will be able to manage things quite differently as they come up.
Choose the right platform
There are times where you can easily spend the right research, which is easy to choose. Try to make sure that you have the right investments. Use this platform to help target a group or certain industry. Try to answer the big questions as much as possible, which will allow you to stay committed to raising money for your idea.
Get legal advice
Once you have decided on the legal platform, pay attention to the deal. It is essential that you understand the liabilities for paying the money back in the future. There are many things which might require legal assistance. Try to make sure that you have a legal advisor from the very beginning, which is one of the best ways to save yourself down the road.
Crowdfunding and crowdsourcing are something which can allow you to have a similar effect which can allow you to primarily bring in mass communication and collaboration, which can have two different impacts. In this article, we are going to be discussing the differences between crowdfunding and crowdsourcing.
Crowdfunding is a process where the business tries to raise a small number of funds which can help a large group of people. Crowdfunding is nothing but a method which will allow you to raise a certain capital from a very collective effort of friends, family and individuals. This is an approach which is based on the collective approach of the large pools of individuals via online means allowing them to reach greater exposure and reach.
Crowdfunding is one of the best ways to gain people who have access to the sources where they can also invest their capital. These people are generally big investors who can have access to the sources for a need at large. In general, crowdfunding usually offers rewards in exchange for money. Rewards generally include things like smaller items which will allow you to have access to some of the best services.
Crowdfunding campaigns can allow you to have specific health needs and charities are not usually reward-based. Just like any other kind of business, there is also another kind of capital which can allow one to raise capital for business. The crowdfunding method will enable one to have the right depends on certain services and products which will allow for the right growth.
There are three primary types of crowdfunding donation-based, reward-based and equity crowdfunding. Most of the times, people can see crowdfunding on social media and something there are accountancies who share their support when trying on campaign support.
The term crowdsourcing is a mix of two words crowd and sourcing. It is basically obtaining good or services from a foreign supplier instead of an internal source. Crowdfunding might seem pretty straightforward but can be varied on many levels. The process can be anything from survey to a website which can involve certain skills which the individual can take. Crowdsourcing has a huge range of things which will allow you to stay on top of many things which will allow you to have the best article.
Also, crowdsourcing has many benefits which include things like less time to working and developing a product, reduce time and market, is cost-effective, a huge range of talent and access to the flexible workforce. Crowdsourcing is one of the best things on the internet, which will allow you to harness the skills and time to reach a wide variety of people who have never been seen before.
The Forex or Foreign Exchange is quite a complicated discipline and forex trading, more so. You need a specific degree and a set of skills to be able to become a successful forex trader. It is not an easy concept to grasp, but it is also not something that should give you sleepless nights, should you take it up as a career. Like every domain, forex trading is also dominated by jargons and visuals that one must understand and learn to decode. And though it might take you a couple of weeks or months to get the hang of the domain, fortunately, there are resources and materials on the World Wide Web that can help you in this endeavour.
One such topic that we have decided to talk about in this article regarding forex trading, is the patterns of forex trading. By the end of the article, you should be able to grasp the basic concepts of forex charts, learn the different types of forex charts and use them for the purpose of technical analysis. Of course, the discipline is far too complex and requires introspection that goes way beyond this article. But, hopefully, this article shall gear you in the right direction and make the nebulous affair of forex trading a bit simpler for you.
The Chart Types:
Speaking of forex trading, there are a few chart patterns that you must definitely wrap your heads around before delving deeper into the core. These chart patterns help you understand the pulse of the market and ensures that you are capable enough to do your research. Research is imperative in cracking your way to the best deals. Similarly, research is also essential when you have to make a successful forex trading career. Of the many chart patterns, the two patterns that are used widely are the Head and Shoulder (H&S) pattern and the Triangle pattern. We shall be dealing with these patterns first, and then move on to the others.
Head and Shoulders (H&S)-
There are essentially two things that you must understand while decoding the Head and Shoulders chart pattern. There can either be a topping formation or a bottoming formation. Now, you must be wondering what these two formations are. Here is what you need to know. The topping formation is an uptrend that denotes a high price followed by a retracement and then again, followed by a higher price. The bottoming formation is suggestive of a low price, followed by a retracement and then again, followed by a lower price. These are the two most important points that you must remember while trying to understand and decode this chart. You must also not forget that a neckline connects the two highs and the two lows and this pattern provides an entry level, a stop level and a target for profit, which thus, makes it tradable.
Now, this particular chart works best when you have a short time period to consider. It is one of the most commonly used charts and can be further subdivided into symmetric, ascending and descending. You must understand that the pattern of triangles occur when high prices and low prices start converging, thus, giving rise to the formation of triangles. And just like the pattern we discussed in the previous section, that is the Head and Shoulders pattern, this pattern too is tradable because it provides an entry, a stop and a profit target. You shall know that it is the entry level when the perimeter of the triangle is penetrated. There are, however, several other technicalities associated with reading this chart and trading them. But, for the ease of your understanding, this is what you must wrap your heads around first.
The Other Types of Patterns:
Now that we have covered the two most important forex trading patterns, we shall discuss about a few other patterns in brief for a holistic approach to the matter at hand. One other pattern that is used elaborately is the Candlestick pattern. The Candlestick pattern is convenient since it helps in measuring the movement of prices in not just one time frame, but in all other time frames. This comes in real handy while navigating the domain of forex trading. The second pattern that we need to talk about is the engulfing pattern, which happens to provide a brilliant trading opportunity. It makes it easy to understand the price movements across the time frames and provides an instant read on the market.
Reasons to Decode the Forex Patterns:
The reason why it is crucial for forex traders to be able to decode the pattern is because these charts provide an instant insight into the prevailing conditions of the market. These charts make it quite easy for technical analysis, and you might have a near-perfect solution to your forex trading endeavours. This is why it is important that forex traders learn to read what the patterns imply. Penetrating the market without the technical knowledge of reading the charts or understanding the pulse of the market can get scary, especially when the market we are talking about is that of forex trading. You will not have the first idea of what is going on in the domain. There are several tools that too can be used to analyse these charts. The more efficiently an individual uses these tools to understand the domain, the better chances shall he have in carving a niche for himself/herself as a forex trader.
A Few Final Words:
Forex trading can get overly complicated at times, if you are not too skilled in reading the charts and analysing the direction in which the wind blows. Hopefully, this article has been able to shed light on the crucial aspects of forex trading. The points that we have discussed in this article shall help you get an idea of how the charts work and how you could use them in trade. Read some more and follow up with research to understand the nuances of this field better.
Crowdfunding has been tagged as an essential move to raise funds for various kinds of projects. It is a method that has received praise from all corners since people provide all that they can to help individuals realise and witness their dreams. So if you have an idea, then you can proceed ahead to make matters meet with the power of crowdfunding. But before you do so, there are certain things that you need to remember. As a basic form of introduction and functionality, it is necessary to know what you’re heading into before opting for the same. Hence, here’s all that revolves around crowdfunding.
1. The Project Initiator
The project initiator can be an artist, an individual with an idea, an entrepreneur or any individual for that matter. All this individual needs to do is to promote the project and begin to market the same. He/she needs to use the digital platforms to reach potential investors and inform them about the project. But unlike the rest, this particular platform does not target a specific set of investors. Instead, it goes all out in being available to all kinds of people and to let them know about the requirements of funds to start a project.
2. The Platform
The platform in this context tends to relate to a marketplace. This place will help the initiator meet different kinds of people who may or may not be interested in investing in your project. A platform such as Kickstarter stands to form the ideal example of a marketplace of this sort. At this spot, individuals with different perspectives and ideas about life come under the same roof.
3. The Crowd
The crowd or the group means the investors who have decided to support your project or initiative. These investors would have viewed your project through the platform and then will decide to contribute based on the particular timeframe. They do the same since they either find the idea to be appealing or witness some form of return from the same.
4. The Categories of Investments
When you receive a particular amount from an investor, it tends to be connected to a specific purpose, that in turn brings about categories. So to make matters progressive, here are those categories.
Reward – a reward-based funding program promotes individuals to financially support a project in return for a tangible or non-monetary reward.
Equity – this is another category that gives investors ownership over assets by also attaching some form of debt or liability.
Debt – as you all know; the debt stands to mean a sum of money that is owed to an individual. So it needs to be returned with the inclusion of interests.
Do you have an idea that can change the conventions or the money to be the pillar to these life-transforming concepts? Then crowdfunding is a term that you have to be familiar with before devising plans for such a technological marvel. You need not be a technical genius to have an understanding of crowdfunding. It simply is a method to raise funds for supporting your innovative ideas, thereby paving the way to better development of the product. Many startups like the Oculus VR began their journey in the market as crowdfunding projects.
You can raise funds through crowdfunding with efforts put in by family, acquaintances, friends, individual investors, and customers. These initial efforts act collectively towards bringing the concept into the crowdfunding sites and social media to familiarize the people with the product. Keep a tab on the growing popularity of the product, which should be achieved by leveraging on the social and crowdfunding networks. By doing so, you are likely to receive more customers and tremendous response for the product through the enormous exposure on the digital platforms.
What is Unique About Crowdfunding?
When you have a business plan on your mind but no finance to materialize the idea, there wouldn’t be an option left but to raise funds or lend it. The traditional method of fundraising will necessitate an adequately set out business plan, prototypes, and research, which would be later presented to the group of interested wealthy individuals or institutions. Most of the traditional funding services are provided by angel investors, banks, and venture capitalists.
Now what stands out about crowdfunding is the aspect of having a single platform where everything from building to sharing pitch resources is done. The developers will have to put in an extra effort here to sift through the personal network, find potential investors, and spend money and time to approach them. Although this is as a time-consuming task, finding opportunities to meet the investors and establishing their project is more straightforward through crowdfunding. You will have several perks when you choose crowdfunding over traditional fundraising methods, some of which may include investing in thousands of exchanges for acquiring equity, the small contribution of $20 in exchange for a first-run product, or other rewards.
Types of Crowdfunding
Business plans have taken a different path with the wide acceptance of crowdfunding, adding to the changing face of the economy. It could appear to you just as a form of raising funds to run a company, but crowdfunding isn’t as superficial a that. It has several features and a few types that make it unique. Here are the different types of crowdfunding:
· Reward-based crowdfunding
In this type of crowdfunding, people will pledge money on a particular project (creative or technology) in its development stage. Both Kickstarter and Indiegogo follow this method of crowdfunding.
· Peer-to-Peer Lending
This type of crowdfunding practices lending of funds outside the traditional banking channels. Debt-based crowdfunding is, therefore, risky business for the lenders.
· Donation-based Crowdfunding
This type combines the aspects of online crowdfunding and micro-finance to fund small businesses in their growing stages
Financing a company or a business idea has to be the most fundamental step towards bringing it into material form. Crowdfunding would be a term that you would be familiar with, which has indeed pave the way for some innovative ideas that took the world by a storm. It is the practice of raising funds for new business plans, to support ideas that are likely to flourish, or also for generous contributions to the people in need. Crowdfunding platforms have been, in the past few years, used only to half their potential. They have more in store than what has already been explored by many of you.
The possibilities within this area of support have been expanding, and its extensive applications are gradually being accepted. Indeed, the entire concept of fundraising took a sharp turn with the advent of crowdfunding. Although the practice has been in existence for centuries, it is only now that an in-depth understanding of such platforms was achieved. Crowdfunding is further classified into three, among which, it is debt-based crowdfunding that we are going to take a tour into. The other two are reward-based crowdfunding and charity-based crowdfunding. Let us have a closer look at debt crowdfunding and its working methods.
Also known as “crowdlending,” debt-based crowdfunding is all about raising funds for a project from individuals based on the interest rate. The entire process runs on the hope for huge returns, which directs to the lenders in the form of interest. Every investor will have a set interest rate, based on which the business of your product runs.
When it comes to startups, debt-based crowdfunding has proven to be the best way to raise fund. What may seem similar to a bank loan on the outside has got features that place the crowdfunding platforms at an advantage. Since such features stand out to be beneficial to the developers, it is always best for startups to approach these platforms. You could also keep this as an alternative when the whole process of acquiring funds from venture capitalists is incessantly excruciating. Raising of finance differs in crowdfunding with the medium through which it occurs. Here, the funds are raised via websites that support crowdfunding or P2P lending. Apart from the interest that the investors receive, it is also the regular capital and the partnership that they own in the product being sold that attract them to these platforms.
Pros and Cons
- When compared to bank loans, the debt crowdfunding method has a lower interest rate.
- The factor that makes this stand out is its flexibility. Since it is much more flexible than a bank loan, repayment is more manageable.
- The product which would have remained within the four walls of the discussion gets a wider acceptance and a reputable brand name among the masses. Consequently, more people would express interest in investing in the product.
- Another attractive feature is that of the easier accessibility and affordability it has than the venture capitalists.
- Repayment would be quite stressful with the piling up debts each month. The established companies might not find it difficult to repay the money with interest. But in the case of startups, repayment would take considerable time, making it better for them to go for reward-based or donation-based crowdfunding.
How Does it Work?
Established businesses have a better chance to pull off the complete process from lending money with ease to repaying it. Convincing the investors is a stage that most of the businesses successfully pass easily, but when it comes to repayment, the newbies face quite some issues. Therefore, the debt crowdfunding has always been recommended for the established groups who can manage the expenses properly at all stages. The crowdfunding works by necessitating the detailed requirements of the loan to be listed down in a pitch and submit it along with the financials to their platform. All terms have to be thoroughly checked before deciding on a particular platform. The platform would set these terms in order to keep the user’s details secure and for background credit checks. The loan terms would include the lowest limit of investment, suitability of the investor’s profile, APR of loan repayment, and many other particulars.
A personal guarantee or business assets will be required as security for the money lent. The value of the document placed as security will depend on the amount of money that is targeted by the company. Lending will be opened once the crowdfunding platform publishes the opportunity through several channels. Until the total amount is raised, the money collected will be held by the crowdfunding site separately.
Getting the idea upfront to familiarize the crowd about it is one thing, but materializing it into the intended form is a whole different thing which is not a cinch. Techies, when thinking of a startup, would have various plans to raise funds. One of them certainly would be crowdfunding, which has now become the go-to for almost all the startup-heads. With the launch of this concept, the scope for venture capitalists to draw substantial interest amounts narrowed further. If your idea is disruptive and impressive, you don’t really need to rely on the money lenders or bootstrap financing which could eventuate into piling up debts. When you put in significant effort to bring about your plan into action and have the confidence to pull it off efficiently by delivering the product, the consumers themselves will find ways to fund your innovative dreams.
Crowdfunding doesn’t function exclusively for the funding of startups and various other business ideas but also as a support in situations such as pledging money to own a stake in a certain company. Many such financially deficit cases can be efficiently dealt with by having the option of crowdfunding to stand as the pillar to your dreams. Here are some of the best and safe crowdfunding sites you can find on the Internet now.
Kickstarter is most commonly known for the launch of some popular products such as the reboot of Reading Rainbow, Pebble Watch, and the Ouya game console. All these products turned out to be a hit and did create a new commercial wave within the respective markets. With many such products having been launched on this platform, popularity grew immensely in the past few years which has tagged Kickstarter with the title of the best crowdfunding site.
If you are looking to raise funds through Kickstarter, you have to set a goal which will be confined by a time constraint. This fixed amount of time should prove your product’s worth; funds should be raised within that limited time to ensure that your project kicks in before it expires. What you need to keep in mind are the methods in which you present the idea to the potential consumers, which should also include rewards that differ according to the funding levels. Kickstarter works in your favor only when you do your part of meeting the goal, until which the project remains unfunded.
Similar to the working of Kickstarter, Indiegogo is said to be the second-best crowdfunding platform available now. The factor that makes it unique from Kickstarter is its quality of flexible funding. What most people using Kickstarter find it hard to cope with the all-or-nothing strategy that it follows, to which, Indiegogo is the most popular solution. This feature helps the projects in which every bit of support is valuable and have no much focus on the actual physical products. The solar roadways project, Jibo Family Robot, and the coding lessons for kids were the major projects of Indiegogo, which were a huge success. Partnership with retailers makes Indiegogo a reliable platform for the funders to invest through. The deals with Brookstone and Amazon add more credibility to the site since it can help them to take up the manufacturing and sales of products.
Advocacy and social change are also areas where a lot of people are now trying to bring about some traction on. GoFundMe appears to be the best option for all those who have plans to fund on any field apart from that of gadgets and technology. This site is now used for various purposes such as raising fund for medical researches, disaster relief, the families affected by natural calamities or personal losses. It is also considered as a central platform for well-wishers to contribute money as a gift for newlywed couples. More than $600,00 was raised for the clinical research of rare cancer called synovial sarcoma, and about $5 million was raised for the support and care of the families that were affected by the nightclub shoot.
4. Crowd Supply
The odd one out on this list, Crowd Supply has little to no similarity with the other sites mentioned here. Crowd Supply stands out as an unconventional crowdfunding site that promotes obscure ideas. Also known as the “hacker’s crowdfunding site,” Crowd Supply derives this name from the one-of-kind set of projects that it supports. They include a budget-based stick PC and a mason ja French press. Crowd Supply is tailor-made for all those who wish to fund the uber-geeky projects which are out of an average funder’s level of comprehension.
Many of us might have heard of the term crowdfunding. But not everyone knows what crowdfunding really means. Most of us have a surface-level and half-baked knowledge about the fore, which leads to making the wrong decisions when the time to implement the technique of crowdfunding arises. And though, crowdfunding is not Nuclear Physics that you have to break a sweat on your forehead lines to understand how it really works, there are a few things that you must understand if you are to make use of the technique at some point in your life.
What is Crowdfunding?
To provide a simple working definition of crowdfunding, it is the process of using persuasion skills and softly coax people into donating a small amount of money for a cause or an enterprise that you are trying to set up. We all know how difficult it is to arrange for the seed money and get investors to invest in your project. With crowdfunding, the process becomes a tad simpler. All you need to do is approach the sentiments of a crowd and get them to invest in small amounts in the project that you are trying to get off the floors. Films, business ideas and other developmental projects can be funded through this process, and there are several cases of successful crowdfunding works that one can look up to.
How Does Crowdfunding Work?
Crowdfunding has a fascinating way of working, and we have already explained the premise a bit in the previous section. Some projects that seek crowdfunding promise rewards in return for the funds that would be poured in by the crowd of people. These rewards range from offering gifts and free products to roping the funders into the project for special tasks. There are several crowdfunding fundraising sites that help projects seeking funds to reach out to the right crowd and appeal to them for funds. All you need to do is sign up to these sites (that may or may not charge you) and get your project rolling.
Crowdfunding Can Be Used for Anything and by Anyone:
This is the section where we stress on the importance of crowdfunding as one of the best fund seeking ideas. Crowdfunding can be used by people seeking seed money to get their start-up established or by enthusiastic filmmakers who are unable to find the right producers for their movie project. As such, the start-up or the movie, or anything else that you might be seeking funds for, essentially becomes the baby of the crowd. Plus, one of the greatest perks of crowdfunding is that you can have a ready-made customer base for your product or service. The people who donated to your cause would anyway be interested to know how the project fared, and thus, much of your efforts into building a customer base shall become easy.
If you had never before considered using the technique of crowdfunding for your project, allow this article to serve as your guiding light and take the right inspiration from it to get your ideas rolling and rightfully funded.
Crowdfunding is a brilliant technique of arranging for funds for a project that would probably go unfunded otherwise. The textbook definition of crowdfunding would be a process where a section of a region’s population donates money in whatever capacity they can, to fuel someone’s project. This project could be anything and everything. From a start-up business idea to an NGO, crowdfunding can help several projects get on their feet and soar high. However, that does not mean that every project funded by the crowd has the potential of faring well in the market. It depends on how credible the project sounds and how well they can implement their ideas in the long-run. And in case you are fishing for more details on crowdfunding, how it works and who owns the money in a crowdfund, read on to understand the process better.
There are several types of crowdfunding out there and depending on the type you select, the ownership of the money in a crowdfund might vary.
In this type of crowdfunding, people invest in a business venture and are entitled to receive a stake in return for their donation. The donation is nothing less than an investment, and therefore, the crowd has a fair share of their money in it.
Loan-based crowdfunding, just like its name indicates, can be treated as a loan where the crowd of people who have invested into the venture shall charge interests on the loan. This type of crowdfunding is also known as peer-to-peer or business-to-peer lending.
Donation-based crowdfunding sets no interest rate and expects no rewards in return. The cause is noble, and the entire amount of money that has been invested in the project is treated as a donation. In such a case, there is no ownership of the money by the public.
This type of crowdfunding works on the idea that people who donate money to the project get something in return, like a reward or free products. These rewards can be treated as a token of gratitude for the support lent by the public towards the cause of the project.
The Inherent Risks of Crowdfunding:
Crowdfunding, as noble and innovative as it might sound, has a few inherent risks. There is hardly any project that does not have risks associated with it. For instance, there is no certainty that the business that the people are investing in shall fare well in real-time. The entire venture could see a cataclysmic downfall or might not even grow to a stature as expected. Plus, the shares promised by the venture to the public might be tedious to sell. The crowdfunding platform itself might just shut down for several reasons. Therefore, these risks must always be entertained before someone goes forward with their crowdfunding ideas.
Crowdfunding is an amazing way to fund projects. But there are also risks that must be taken into consideration. The best way to go forward with crowdfunding projects is by understanding the risks and then selecting the right type of crowdfunding. This could help in minimizing the risks and promise a high return, if that is the kind of crowdfund one is opting for.
Crowdfunding has become one of the most common ways people are trying to invest their money in some of the best campaigns. Most platforms are only required by the maker good efforts and deliver to their promises. There are no consequences when people take the back step from their delivery date. There are many things that can easily go wrong when it comes to a campaign. This generally involves things like underestimating the amount of funding, manufacturing issues and other delays. Sometimes the projects fail which can lead to unexpectedly large volumes of order which can intentionally or unintentionally go wrong. For the most part, there is nothing that you can do, but there are some tips which will allow you to stay safe from some scams.
How to avoid a scam
Avoiding a scam involves a little bit of luck and a whole lot of understanding of careful consideration. Once you have entered there is no guarantee, but before you do, there is a high chance of you winning. Here are some tips to keep in mind before you get the chance of returning empty-handed.
- Complexity: There are some ideas which are easy to bring into life than others. There are many machines which require a simple design, material cost and also machines and shipping. These are some of the products which do not require a large sum of money and any delay can be resolved in a matter of days.
- Research the creators: This goes without saying that before you support the creators, it is important that you learn about their profile. Learn about the creators from their LinkedIn and Facebook profiles which will allow you to understand them in a personal as well as corporate websites.
- Analyse their background: After you have examined the creator, you need to make sure that you understand the past achievements. This is one of the best ways to examine the creators before they can complete the project on time.
- Check the comments: Most crowdfunding platforms provide comment sections where the backers can easily bring their questions and get the right feedback. This allows you to get the right public forum allowing you to think about the backing projects with the help of the comment threads.
- Keep an eye out: Now that you are going to pledge your money. You need to make sure that you try to actively look for the other encounters which can allow one to get the right tools on time. Look for details like the product, manufacturing and delivery which will happen after you reach the goal of getting successful progress.
Make sure that you are constantly checking up on your projects which will allow you to stay updated. Also, while checking up, make sure that the project is headed in the right direction. Make sure that you are circling back and check on the comments sections which can allow one to commence the product by its delivery. If you find the final product to be different from described, you can start a conversation on the comment section. Sometimes you might also be able to get the right refund before your package is shipped.
Alternative finance is nothing but looking into the financial channels which can process the instruments which have emerged from the traditional sources of economic systems. These alternative finance systems are not regulated by the banks and capital markets as they include things rewards-based financing; like crowdfunding, equity crowdfunding, revenue-based financing, peer to peer consumer and crowdsourcing.
In recent, we have seen a considerable amount of growth in alternative finance instruments, especially for small and medium enterprises. It is estimated that the online European Alternative Finance Market has reached over $3 billion in a year. But the alternative finance is something regulated, but some countries do not regulate it. There are a lot of factors which goes into the alternative finances and in this article we are going to be learning about the same.
Crowdfunding has a lot of history as it has been performed for centuries. There are many authors who publish and advertise book projects which can allow one to have access to the right subscription scheme. The subscription business model allows one to have the right crowdfunding access, which will allow the right flow of money on the arrival of the products.
Crowdfunding on the internet gained popularity when the arts and music communities started to gain attention. When Marillion, a British Rock band gained US$60,000 in donations, people changed their view on raising money. The band later used this method to help fund their studio albums as well. This is one of the best examples for crowdfunding which was a success. There are different types of crowdfunding-
- Reward-based crowdfunding: The entrepreneurs presell the product to launch a business concept without incurring debt.
- Equity crowdfunding: The backers receive a share of a company in exchange for a monetary pledge.
- Software value token: This another kind of crowdfunding which allows you to raise money via digital assets.
Equity crowdfunding is the online offering that can be given by a private company with the securities to help a group of the people for investment into the commercial enterprise. More often than not, equity crowdfunding enables the board group investors to fund the right startup companies. The investors give money and allow one to receive the ownership of the business. As the value goes up, as does the share value of the business.
Equity crowdfunding is often used to describe a crowd fund which is based on instruments like equity and a debt instrument, which also includes the share of the profit. The term equity crowdfunding can be described as the investment in debt and equity-based instruments, which can allow one to get the right crowdfunding platform. Selling investment is also one of the best ways to crowdfunding investment but will have to standardise the terminology of the practice from other forms of crowdfunding.
Revenue-based financing or royalty-based financing is a type of financial capital which can allow you to have the right business investors which can invest in your business for the returns on a fixed rate. Revenue-based financing can be described as a loan which requires collateral and other assets. It can also involve the selling of the equity portion in exchange for an investment. Revenue-based financing does not require you to be a member of the board of directs but has the right valuation in making the right investment.
Revenue-based financing was used in the energy industry in debt financing. This was the design which was financed by the funding model in early-stage business in New England. In the year 1992, the industry saw the performance of on-par with expectations for alternative assets for over 50%. The Revenue Capital Association is the trade association which can represent the right RBF industry. This allowed them to have the right geographic focused model, which allowed one to take a nationwide approach, especially focusing their search on the Mountain States.
Peer to Peer lending
Peer to peer lending is a practice when one can lend money to a business through online means. In peer to peer lending, the companies often offer their services which can allow one to have the right means to operate their lover overhead. The lenders can easily earn higher returns when compared to people who are saving and investing in other assets. It is important to note that peer to peer lending does not fit into the concept of three-dimensional types of financial institutions which is deposit takers, investors, insurers.
Peer to peer lending is conducted in the form of profiting, which can allow one to establish the right relationship between the lenders and borrowers. The intermediation by the peer to peer lending company has allowed easy access to the transaction, which can allow one to have the right access to online sources. With access to the right platform, it offers secured as well as unsecured loans to protect government insurance. Loans can easily be secured and transferred with the collection of debt or profit that can allow one to transfer free facilities and free pricing choices which the cost a very high percentage of the sales.
Crowdsourcing, as the name suggests, is a sourcing model which allows individuals to obtain the right good sand services, which also includes things like ideas, finances, and other rapidly evolving groups of internet users. The word crowdsourcing is nothing but a mixture of crowd and outsourcing. There are major differences between crowdsourcing and outsourcing. Crowdsourcing comes from a less specific and more public group where the people can outsource their commission.
Crowdsourcing is one of the best ways to help encourage the crowd to find the right ideas and innovations. This can help provide ways to build the organisational base of minds. It has been used by the not for profit organisation which can allow one to create common goods. The effect of the user can allow one the right platform to be taken into account, which can evaluate the right performance and ideas in the crowdsourcing contexts.
The new norm of gaining a foothold in business has to be through crowdfunding. It established an opportunity for individuals to display their talent or ideas to the entire world. This particular form of the display takes place through secured websites that bring in the large crowds. That also goes ahead to raise the question of how to choose a website for this purpose. So if this particular question has been revolving around your head, then we have come with tips to help you out. Hence, here are ways to choose a secure crowdfunding website.
Reputation is quite essential for this matter. By looking into their past record, you will be able to evaluate their reputation and understand their history. In this manner, you will get an idea about what they stand for and all about their different ventures. The various projects that they have supported over the past, different kinds of steps taken to support them, and so on. A massive group of investors will be lurking around reputable websites since they do realise that these are the places that will showcase their money’s worth. Hence, always look into their reputation before choosing a website.
Choosing a website will be one of the first steps taken by an individual who is venturing into the world of business. Since you are just getting started, you need someone who can guide you across the path in an effortless manner—so looking for websites that display terms and conditions that are user-friendly stands to be a vital step. For this purpose, you can look into reviews and other aspects of the organisation to study their way of functionality. Since it is the first step, one should never think about making errors or joining forces with the wrong organisations.
3. A Unique Approach
The creative nature of your project requires someone who can understand the primary purpose and help you get across the bridge. An ideal way to make matters meet on this front is to look for websites that follow a unique approach towards the process. They should be supportive of ideas and should not be the ones who tend to stick around with only conventional ideas. Their willingness to be open and commit towards a particular project is a special quality that will be great for business.
4. The Selection Process for Investors
Another essential aspect that you need to look into is the process of selection for investors. Your platform needs to follow a particular set of terms and conditions before they go all out into bringing investors on board. By looking into the same, you can be glad about securing the right base who will be supportive of the idea that you are about to put forward.
Crowdfunding is one of the best ways to raise funds to help kickstart you startup dream. Crowdfunding is one of the best ways to ensure that you have created the right business plan and idea that can be uploaded into the website while ensuring financial goal in mind. Crowdfunding is also one way to ensure that you have reached a specific goal to help ease the old methods.
Types of crowdfunding
Crowdfunding is much more advanced than it seems. For starters, crowdfunding is of two types, receiving rewards and equity crowdfunding.
This is one of the most common types of crowdfunding which will allow the investors to get the right rewards for their investment. If you have donated a certain amount of money to an entrepreneur, try to make sure that you have access to some of the new board games that will allow you to start you investments. This is one of the easiest ways to attract people. This means that many people will fund your idea and can instantly become a huge hit. There are many traditional types of investing which can allow one to have the right skills allowing the system to work.
This is a newer way of crowdfunding which will allow you to collect upwards of $1million over the internet. This is a type of funs where people who contribute become shareholders. This is reward-based crowdfunding which will allow you to enjoy a traditional way of pitching an idea. Equity campaigns for your business can allow you to have the right incorporation if business deals. This will make sure that you make the most out of JOBS Act that is entitled to no limitations.
Some ways crowdfunding is changing the way startups raise money.
- Crowdfunding has made it easier for entrepreneurs to keep their skill set at best. Crowdfunding is different than traditional ways of funding a startup.
- There is no need to create a speech and presentation to impress others.
- You have a wider range of investors and the audience that you can cover.
- Social media is one of the best places to catch the best investors.
- Easy interactions with the investors give them clarity of the project and allow your campaign to grow.
- There are many crowdfunding platforms which give you easy access to online investors like, Kickstarter, Crowdfunder, Indiegogo.
Crowdfunding is still emerging, and it has already made it possible for the entrepreneurs to get access to some of the best investors with the help of online resources. Today, funding can be done by uploading an idea on to a crowdfunding platform which is just a few clicks away.
Crowdfunding is one of the best ways startups can easily earn their funds which has allowed them to have the best time. Crowdfunding typically takes place in three basic steps with the help of reward crowdfunding, debt crowdfunding and equity crowdfunding. Each crowdfunding has its own perks which allow the people to invest in you idea. Online crowdfunding is one of the best ways one can start with their startup. With the overwhelming amount of platforms available, it becomes difficult for people to find the right platform. In this article, we are going to be discussing some of the best crowdfunding platforms which will allow you to the right wins.
Kickstarter is one of the biggest names when it comes to crowdfunding. It is known to be very helpful for any creative entrepreneurs. Kickstarter helps enable the projects to raise sufficient funds which will allow them into venture capital. This is a company which has to date raised more than $4 billion for more than 155,000 projects. The potential funders can easily browse through many vertices which can allow one to get the right platform from arts to publications. Kickstarter is a platform where you will either have to impress the people or earn nothing.
Indiegogo is a platform which is specifically created for the users who are using creative campaigns for tech innovators, creative works and community projects. It is a crowdfunding platform which works in a similar fashion as kickstart, which follows an all or nothing platform. With Indiegogo, you can easily choose yourself the right funding, fixed and flexible spendings which will provide for many funding benefits. There is no fixed funding fee for the campaigner but will have to pay 5% on flexible funds. There is also a 3% processing fee which will gain you a minimum of $500.
Causes is the world’s largest online campaigning platform which is focused on social, political and cultural issues. The brand itself has a social network for people who are trying to make a huge difference faster and more efficient. This is a site which is great for non-profits and allows the donor to build the right community. Causes is free of charge for its users and can allow you to have the right collection of donations and pledges, raise awareness, and share relevant information to the donors.
Patreon is a popular site for digital creative where one can collect money out of campaigns donations. This is a subscription model where the patrons can play regularly and contribute to the amount every month. The site allows the artists to help form a relationship which can allow one to deliver exclusive content with certain incentives which can help fund them to do better.
Getting investment for an idea or a cause is now easier than ever. With crowdfunding, any individual can pitch their project to the online platforms, which can bring them funds based on how many people are interested in their project. Small businesses and organisations can benefit from crowdfunding by reaching out to a group of people asking for their support.
You can choose from the three types of crowdfunding to ask for funds. The first is reward crowdfunding, where you offer a small gift or your product sample in exchange for a fund. The second is debt crowdfunding, where you take a loan and pay it back after a specified time period. The last one is equity crowdfunding, in which you offer a part of your company’s ownership to the funders.
The crowdfunding platforms also charge their own fees for hosting your project. While some charge fees for each fund raised, others take an amount from the overall earnings. There are some websites which offer all or nothing model which only gives you the funding when you reach your intended goal. Here are the three best crowdfunding platforms for all kinds of ideas and causes.
Indiegogo, unlike Kickstarter, is not an all or nothing platform and offers flexible funding. You can take out your money anytime you want, even when you do not reach your goal. Indiegogo campaigns are primarily meant for tech innovations, community projects, and creative works. User can choose between fixed and flexible funding. You can use fixed funding if you need a certain amount of money for your project, or you can use flexible funding for benefitting from any funding that you receive. With fixed funding, the funds will return to the donor if you do not meet your goals.
It is one of the most popular platforms for entrepreneurs who are looking for funding for their projects. The projects can vary from technology to research to art to even NGOs. Before you can launch your fundraiser, you will need to submit your entire project to Kickstarter. Once they approve your project, it will be displayed on their website. For each goal that you achieve, you need to set a gift or a personal demo for your donor. Kickstarter is an all or nothing platform.
Causes is the best platform for non-profit organisations to raise funds for charity campaigns. It is the world’s largest online campaigning platform which is dedicated to social, political, and natural causes. It is a social network for those who want to make a difference in the world by spreading the right awareness and help. You can use your page to collect funds, create awareness, and to interact with people with common interests. Individuals can also introduce their ideas and create a network to raise funds for their projects.
When you have an idea of becoming a helping hand of society by raising awareness and fulfilling the requirements of those who lack the basic facilities, things can get financially difficult. Running a non-profit organisation is a difficult task as you will need to find new ways of raising money. Today there are plenty of crowdfunding platforms which offer a solution for the financial problems of non-profits. The non-profits can build their audience on these online platforms and take their help in raising money for the charities, NGOs, and similar organisations. Here are the best crowdfunding websites for non-profit organisations that you can use to build funds for your cause.
Rally is an easy to use online platform which helps the non-profits to build an audience which can make small donations individually to help the organisation. All you will need is an engaging presentation to explain your cause to the people.
HopeMob is a charity dedicated platform where you can connect to a community of over 10,000 members. The platform has helped a lot of non-profits to collect thousands of dollars to help their cause. The Supply is one such organisation which raised over 5,000 dollars to build schools in Nairobi.
RocketHub is majorly funded by the television network A&E which helps small organisations with their projects. The fees and donation for the projects depend on whether an idea is being executed properly or not, to achieve promised results.
Indiegogo is one of the best crowdfunding platforms which supports businesses, artists, and non-profits to raise funds. There are fixed and flexible plans that you can choose from. For non-profit, flexible plans can be a better choice as they can continue the work while they get funded. But flexible plans also take a higher percentage of your funds.
Crowdrise is a categorised platform for different non-profits and charities like animal welfare, education, disaster relief, etc. The platform also hosts several campaigns for the non-profits to attract more audience for the cause.
Causes claim to be the biggest crowd fundraising platform for non-profits which are registered under government. The crowdfunding initiatives can be used for creating petitions for people and raise awareness on several issues.
FirstGiving is one of the oldest crowdfunding platforms for non-profits which has raised funds for many non-profit sectors such as Habitat for Humanity, The Human Society, and Special Olympics. It is a known platform for non-profits to raise funds and host campaigns.
CauseVox provides a community of non-profits which can customise their online page and upload pictures and videos without the need of a web developer. They help the community to connect with each other in order to find potential donors who will be interested in working with a cause.
The internet has been a blessing for people which has eased many requirements of the individuals over time. There are plenty of apps that help people in commuting, purchasing food, ordering electronic appliances and also in providing entertainment. Similarly, there are also P2P lending and crowdfunding platforms which offer funds for creative works and start-ups. This opens new opportunities for people who have been facing problems with getting an investment for their projects.
What is peer-to-peer lending?
Crowdfunding helps individuals to pitch their ideas to an audience and raise funds for their projects. The people who fund the projects receive the favour back by rewards, sample products, equity shares, and other means.
Peer-to-peer funding involves interactions between individuals without a central authority. It is done in several ways, such as providing special benefits for the users of an application when they share the app with their peers. This benefits the developers as they reach out to a wider audience and also helps the users to receive special discounts and services for sharing the application. It saves companies from referring to platforms or organisations for advertising their products or services.
Together P2P and crowdfunding can raise fundings for business on online platforms in exchange for interest payments or equity shares. The online platforms act like traditional banks which offer the funds as an alternative.
Why is peer-to-peer lending beneficial?
P2P can allow businesses to raise more money in less time. A business can earn millions of dollars while using the P2P service. This type of funding makes the financial requirements easily accessible to small businesses who do not meet the eligibility criteria of banks. Crowdfunding also offers individualised financing terms according to the needs of the borrowers. The repayments for the interests rates are also flexible for the borrowers according to the plan that they choose. The reason why individuals like to invest in crowdfunding is that they also enjoy several rewards to even an extent to share equity with the companies. It allows individuals to invest in companies with potentials which can offer them profits in future.
Why can crowdfunding be a bad idea?
While crowdfunding seems like an advantageous plan as compared to traditional financing, there are some drawbacks in this plan too. The banks which offer financial support tend to have better performance track records and lower default rates. If someone is not confident about taking loans from an individual investor, banks are the best option for them. The banks also charge significantly lower interest rates as compared to the overall expenditure on the crowdfunding platforms.
Another drawback in crowdfunding is that the business will need to disclose a lot of financial information to provide the likelihood of repayment. It makes the information of a company public. If the borrower is not okay with disclosing such financial information to individual investors, they should refer to a bank for investment.
Sometimes it can be difficult to find an investment for a great idea that you have been building with your friends. It can be the next big thing in the market. After you are done with planning your idea, it is time to raise some capital. But if you do not have the right sources of investment, it will take years for you to build your business from scratch. Crowdfunding is a new alternative to seeking investments form an individual or an organization. It offers you to present your idea to the public and raise funds from each of them. There are plenty of crowdfunding websites around the internet that offer to raise funds for your new business. It is an excellent way for individuals who seek investment for their small businesses. Here are the websites which offer crowdfunding platforms for individuals.
Kickstart is currently the best platform for anyone who is seeking investment for a project, a business, filmmaking, music production, and art. It is a helpful community which brings people’s ideas to life. The platform is an all or nothing fundraiser which offers the funds only when you reach a set goal in the allotted time. It is free to use, and the website collects 5% of the total funds. You will also have to pay for the processing fees for up to 5%.
Crowd Supply works to provide funds to the latest technology hardware projects. From bringing a family recipe to the market to creating electronic hardware, the platform hosts campaign for all kinds of ideas. Many times Crowd Supply has raised up to 5x times the funds as compared to Kickstarter. The platform provides plenty of plans. The standard plan takes 5% of the gross campaign sales, excluding 6-15% of sales. Other plans include campaign management, PR team, and asset creation.
Indiegogo is a wide platform for both crowdfunding as well as a marketplace for innovative products. It has successfully raised over 1 billion dollars for entrepreneurs. This platform is also not an all or nothing program so you can choose between fixed and flexible campaigns. Fixed plan can be used for bigger projects while flexible plan can benefit the companies who have the process running every day.
Patreon is a great platform for artists, writers, filmmakers, and musicians to start earning by running a membership business for their fans. The fans pay for subscription amount in exchange of special content such as behind the scenes. Patreon has raised over $350 million for the artists and creators who work with new ideas to create content for their audience. Patreon takes 5% from the processed payments, excluding the processing fee. Additional charges may also apply to move funds from the creator balance to any other online wallet.
In simple words, crowdfunding is a method of generating funds with the help of friends, customers, and individual investors by delivering an idea with a quality presentation which promises the audience better solutions. The fund seekers also have to hold certain rewards like sample product, equity, interest on the funds to attract crowdfunding. This method is comparatively successful than applying in a bank as it does not require any certain criteria to qualify for a loan. Crowdfunding is done through social media, online fundraising platforms, and community networks.
What makes crowdfunding different?
Crowdfunding is an unorthodox way of approaching business finance. If you want to start a new business, traditionally you had to create a plan, do the research, and create prototypes before approaching a limited wealthy pool of investors which included banks, angel investors, venture capital firms, and equity investors. If you fail to convince your investor, you will lose a lot of money and time on the meetings.
Today you can pitch your idea to a wider audience using the crowdfunding platforms and take small donations from them to create a big capital for your business. With a single platform, you can spread your idea at once so that you do not have to spend money and time on it. The online crowdfunding platform will automatically attract the right audience based on your product or service and help you get the right investments. The interested parties will have more ways to support you in your project.
Benefits of crowdfunding
Crowdfunding does not only connect you with a wider fundraising opportunity, but it also comes with several other benefits.
It helps your business to reach to a wider audience around the world. You can connect with thousands of investors and convey your idea in a fast and convenient method. This will help you raise your funds at a faster rate.
The online crowdfunding platforms also provide a better view of your projects by gathering information in different categories, including history, traction, offerings, value proposition, target market and audience, and more. All of such information is presented in a more professional way to impress investors.
You can also hire your own PR and marketing team through the online crowdfunding platforms. With their help, you can promote your business better and create campaigns through social media, newsletters, and other marketing strategies to grow your online presence. The PR and marketing team can help in getting better traffic to your crowdfunding page to generate more capital.
Improvement and efficiency
When you project your idea to a wider audience, you will face a lot of questions regarding your product or service. This can help you in finding out the loopholes in your plan when you come across a question you are unable to answer. Also, when you have a single profile to connect with the entire audience, the process of getting investment will automatically speed up. It will help in getting the investments coming while you can focus better on your business.