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All That Revolves Around Crowdfunding

All That Revolves Around Crowdfunding

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.

Project Initiator

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.


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