2.9 Billion U.S. Dollars have been successfully invested on the most popular crowdfunding platform, Kickstarter as of September 2017. If you don’t know about crowdfunding, you have come to the right place.
What is Crowdfunding?
Crowdfunding is entrepreneurship at its core- a way to get your dream venture started, using a way that is not just accessible to super-humans. It is the practice of funding a business or startup by raising many small amounts of money from a large number of people, typically via the Internet.
Crowdfunding has been used to fund a wide range of for-profit entrepreneurial ventures such as artistic and creative projects, travel, or community-oriented social entrepreneurship projects.
How it works?
For the Entrepreneur: It provides a platform for anyone with a business proposal to pitch that to the right kind of investors on the crowdfunding platform.
For the Investor: It provides a platform to the investor to invest his/her money in what he/she thinks to be the next big thing. In a Rewards Based crowdfunding, the investor receives a gift for the funding or may participate in the launch of the product/service. In Equity Based crowdfunding, the investor gets an equity position in the venture.
Most Popular Crowdfunding Platforms to Get Funding:
Crowdfunding is the easiest way out there to fund your business or startup. Some of the pros of crowdfunding are:
· Validate and test the market demand of your product before launch and use the feedback.
· Create a buzz around your product by tapping into a huge marketplace.
(Both Kickstarter and Indiegogo receive about 6,00,000 unique visitors per month)
(Applying for a loan or meeting with Venture Capitalists is the most nerve breaking experience for entrepreneurs, but setting up a Kickstarter page is a breeze.)
Why NOT Crowdfunding?
· May prove inadequate for raising millions of dollars.
· Not suitable for raising funds at the speed of light.
Akanksha Goel | LinkedIn