Crowdfunding Startups: Future of Fundraising Reasons to be Cheerful!

With the effect of increasing Globalization, folks from all over the world are engaging themselves into opportunities which have never been looked before. Be it launching a techie product, starting up a business venture, or developing an idea relying in its embryonic stage, the primary and common hindrance among all is the funds.

Fundraising, nowadays, has not limited itself to just non-profit organizations, but to every individual, group or organization that is looking for funds. The process involves taking funds from a large number of people for a particular cause or idea. However, certain aspects have also been unfolded related to fundraising, broadening the horizon and scope of the phenomena.

Crowdfunding is an alternative technique of fundraising which aids in raising funds from a large number of people typically over the Internet. So whether it’s making a theatrical, short-film, releasing your music album, launching your startup or even introducing a new dish, the concept holds applicability for all. While normal fundraising involves voluntary contributions from whosoever feel for the cause or idea, fundraising via crowdfunding has deviated into following types:

Reward-based Crowdfunding

Under reward-based crowdfunding, the person who contributes receives rewards in return for their financial contribution. These rewards could range from a thank-you note to credits in your final output. It could be anything that expresses your thankfulness towards your backers/supporters.

Donation-based Crowdfunding

This type of crowdfunding is mainly applicable to social organizations where people contribute to get self-satisfaction.

Equity-based crowdfunding

Here, the backers receives equity/shares in return for their monetary contribution. This type of crowdfunding is mainly for the business ventures that are looking for funds.

Conclusion

The added advantage of the concept lies in the fact that along with the funding, the project owner also gets the platform to reach out to the maximum number of people. This way, the pre-marketing cost also diminishes. Also, the idea owner gets the genuine feedback of the people way before launching the actual product which helps him to improvise.

Therefore, we can easily conclude that fundraising has availed the people with a lot of benefits. People, now, do not get hassled on thinking about fundraising rather it has become more of a serious business with a lot of excitement and motivating factors making it highly acceptable worldwide.

If you too have an idea and are looking for funds, fundraising via crowdfunding could be a stepping stone for you!

Happy Crowdfunding!

Guest Author: Nikhil Agrawal