What is Crowdfunding?
Crowdfunding is a way of raising money to finance projects and businesses.
It enables fundraisers to collect money from a large number of people via online platforms.
Crowdfunding is most often used by startup companies or growing businesses as a way of accessing alternative funds.
It is an innovative way of sourcing funding for new projects, businesses or ideas.
Traditional Funding
Large amounts from one, or a few, sources
Crowdfunding
Many small sums from a large group of individuals
How Does Crowdfunding Work?
Crowdfunding platforms are websites that enable interaction between fundraisers and the crowd.
Financial pledges can be made and collected through the Crowdfunding platform.
Develop a business idea or goal.
Choose a crowd funding site.
Crowd funding site screens you for eligibility and fit.
Create your crowd funding campaign describe your business idea or goal.
Share your campaign with family, friends, and social networks.
Supporters pledge funding.
Campaign closes, and you receive funds.
Crowd funding platform subtracts its fee.
Complete your business goal or bring your product to market.
Reward your supporters with equity, product samples, or loan interest.