What is Crowdfunding

Crowdfunding
Source: Yourstory

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 an online campaign including their stories, photos, videos. In return of this, they can generate donations for several causes helping stand out firmly.

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

Crowdfunding to Fund Essentials

One can use crowdfunding to raise money for the following things.

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

Crowdfunding Types
Source: sagipl

Types of Crowdfunding

Basically, crowdfunding is divided into the 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. Moreover, it also help 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. Though, it enables to form new partnerships with new business minds.

Crowdfunding-Benefits
Source: Moneycontrol
  • 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. Furthermore, you can keep track of the progress of your fundraising.

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