3. Meaning
Crowdfunding is the practice of
funding a project or venture by
raising money from a large number of
people.
5. Types of crowd funding
There are four main types of crowd funding ,
including donation, reward , equity, and debt
crowd funding options.
7. Donation crowding is a
type of campaign where
there is no financial
return to investors or
contributors. Individuals
give donations to fund a
specific idea or cause.
For example, a
company might give
charitable business
donation to help raise
money
Donation
8. Reward crowd
funding
Reward crowd funding involves
individuals contributing to a business in
exchange for a type of reward or incentive.
Usually, the reward consists of something
relating to the product or service your
business offers.
9. A. Equity crowd funding offers
individuals real investments in
private companies.
B. Contributors can become part-owners
of your business by trading capital for
equity shares.
C. Essentially, equity crowd funding
allows you to sell off a piece of
ownership to a contributor.
10. Debt
crowd
funding
In debt-based crowd funding,
the individual running the
campaign borrows money
from contributors. Individuals
agree to lead money to a
company. In return, business
agree to repay lenders.
11. The Advantages of
Crowd funding
• Flexibility :-
The kind of fundraising
comes with a lot more
flexibility than your
average loan or equity
investors and you can’t
get a loan or don’t
want one-this is a step
in the right direction.
.
12. Opportunity:-
Sometimes it allows unproven concepts to
validate their merit in the public space.
This acts as a stepping-stone to bigger
deals, prototype developments or
expansions that lead to successful
alliances,acquisitions,or
investments down the line
13. Public Reach:-
When you decide to crowd fundraise, you
tend to reach a lot more people than you
would have sitting down with some
investors.
14. Time saver:-
Your platform page will
centralize your campaign
efforts and setting up a
campaign is quick and easy.
This central online location is
ideal for attracting and winning
supporters.
15. Easy to promote:-
Thanks to the central nature of your
page, all of you online promotions will be
more effective. Page links can be used in
several marketing tactics to create a
streamlined process that increases your
chances of achieving your goal.