What is Crowdfunding?
Crowdfunding is the strategy for business people, innovative masterminds, and non-benefits to get funding. In its essential frame, it is the pooling together of little measures of cash from a gathering of a group that shares your passion and that you communicate with web-based utilizing web-based life. Everybody can utilize it without setting off to the banks or VCs, and the probability of getting subsidized is altogether higher.
In March 2014 was a major month for crowdfunding and for crowdfunded products. In the start of the month, Kickstarter reported its one $1 billionth vow. 5.7 million individuals have sponsored around 130,000 imaginative activities on Kickstarter.
What are the types of crowdfunding?
There are four basic types of crowdfunding: Donation, Rewards, Debt and Equity.
Donation- The Donor gets nothing in return from potentially an expense receipt. Any donor who relates to the cause is welcome to donate towards the campaign. No limit of amount donation. Top stages GoFundMe, Fundly, DonorsChoose for Teachers, and Causes for raising assets and making petitions.
Rewards- In reward-based crowdfunding, the donors who believe and donate to the cause are given a small reward in exchange for their contribution towards the cause. Top stages incorporate Kickstarter, Indiegogo, and RocketHub.
Debt- In simple terms, debt-based crowdfunding is the practice of raising funds from individuals, in return for interest. The person who supports your project by putting his money is known as an investor. Debt-based crowdfunding is also called as "Lending Crowdfunding ."
Equity- Equity crowdfunding is the process where people invest in an early-stage unlisted company in exchange for shares in that company. Top stages incorporate CircleUp, Fundable, and MicroVentures.
Source : Crowdfunding Clone Script
Kickstarter Clone, enables you to start a new project, by posting project details online.
It allows you to select the range of the amount to be funded by backers.
In return fundraisers can offer them special gifts; according to the fund they have raise or donated.
Then project is categorized under categories available.
Backers who visit to provide fund to the fundraiser, are notified on receiving fund.Crowdfunding script, Kickstarter Clone is0 also called future of finance.
The concept is simple: a large number of people (the crowd) fund small amounts of money to accumulate into an investment large enough to finance a project.
You have decided this crowdfunding thing at raising money online is a great way to kickstart your new service or product, is a new way to revive your business or will assist you for a charity fundraiser.
Whichever it is and if you’re not careful it can be quite expensive at raising money online, especially if you’re just starting out.
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Traditionally, if you want to raise capital to start a business or launch a new product, you would need to pack up your business plan, market research, and prototypes, and then shop your idea around to a limited pool or wealthy individuals or institutions.
These funding sources included banks, angel investors, and venture capital firms, really limiting your options to a few key players.
You can think of this fundraising approach as a funnel, with you and your pitch at the wide end and your audience of investors at the closed end.
Fail to point that funnel at the right investor or firm at the right time, and that’s your time and money lost.Crowdfunding platforms, on the other hand, turns that funnel on end.
Traditionally, you’d spend months sifting through your personal network, vetting potential investors, and spending your own time and money to get in front of them.
With crowdfunding, it’s much easier for you to get your opportunity in front of more interested parties and give them more ways to help grow your business, from investing thousands in exchange for equity to contributing $20 in exchange for a first-run product or other reward.There are different types of crowdfunding script business model which are: Reward based crowdfunding, Equity crowdfunding, Debt based crowdfunding, Ligitation crowdfunding, Donation based crowdfunding.Reward-based crowdfunding: It is also known as non-equity crowdfunding.
