What is Crowdfunding

Crowdfunding is a technique that holds the big power of social sharing and personal networks. Through this method, one can ask for donations from their family members, friends, and network. The individual can create online campaign including their stories, photos, videos. In return of this, they can generate donations for several causes.

What is Crowdfunding

Source: hipgive

If you are starting a new business and looking for financial support to transform your dream into reality then crowdfunding is there for you. It is also a great tool to test the target market in order to figure out whether your product has a potential.

Crowdfunding to Fund Essentials

One can use this technique to raise money for following things.

Animal Causes, Clubs and Organizations, Cancer Treatment and Awareness, Entrepreneurial Projects, Fraternities and Sororities, Kids Medical Expenses, Memorials and Funerals, Military and Veterans, Nonprofit Causes, Political Campaigns, Religious Causes, Individual Fundraising Needs, Runs, Walks, and Rides, Schools and Education, Sports Teams, Trips and Adventures, Engagement and Wedding, etc.

Crowdfunding Need
Source: startups

Types of Crowdfunding

Basically, crowdfunding is divided into following three types depending on the nature of fundraising.

  • Equity-Based
  • Reward-Based
  • Donation-Based
  • Debt-Based

Top Benefits of Crowdfunding

Wide Reach

This technique provides you access to thousands of accredited investors. It eventually helps you to interact with them and spread your fundraising campaign.

New Partnerships

This funding plays a significant role in your business as you can share your idea with people with the same level of thoughts. It enables to form new partnerships with new business minds.

Crowdfunding Source
Source: 3dnatives

Instant Validation

It minimizes redundant work that needs to perform while raising fund through other methods. You can carry out each process online, no need to do it manually.

PR & Marketing

From Beginning to end, you can share, spread, and promote your campaign on different social media platforms. You can keep track on the progress of your fundraising.

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