To step out of your comfort zone, to live your passion, to fulfill your desired goal, all you need is funds or capital. 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.
Here comes the helping hand for you, Crowdfunding.
What is Crowdfunding?
Crowdfunding is a method of raising capital through the collective effort of friends, family, customers, and individual investors. This approach taps into the collective efforts of a large pool of individuals—primarily online via social media and crowdfunding platforms. Most of these campaigns happen via internet platforms, and have set timeframes for when money can be raised and disclose specific monetary goals.
Read about what crowdfunding is:
What is Crowdfunding?
Crowdfunding is a way of raising finance by asking a large number of people each for a small amount of money. To read more, Click here
Must Read : Do you know the questions that angel investors ask entrepreneurs ?
Crowdfunding sites to fund your startups
With the growth in use of crowdfunding methods, the internet has come-up with several crowdfunding platforms. Through these mediums, the crowd willing to fund and the individual urging to raise funds can easily tap each other.
Know about different crowdfunding platforms:
10 best crowdfunding sites in the world.
In today’s digitalization world that has changed nearly every aspect of our lives, crowdfunding is a new and rapidly growing space which is reaping maximum benefits of digital technologies. To know more, Click here
Top 30 crowdfunding platforms to fuel your startup.
Every Fortune 500 company was once an idea, but it takes a lot of effort to convert that idea into a successful business. To read more, Click here
7 best crowdfunding sites in 2020.
Even if you’ve never heard the term crowdfunding, you’ve probably come across an example of it on social media. To know about the best sites for crowdfunding, Click here
Types of crowdfunding:
Investment-based crowdfunding: You invest in a business and receive a stake in return (normally shares).
Loan-based crowdfunding: You lend money to individuals or companies in return for a set interest rate. It’s also called peer-to-peer or peer-to-business lending (P2P or P2B).
Donation-based crowdfunding: You donate to a person or a charity (you may be promised something in return).
Reward-based crowdfundin:. You give money in return for a reward linked to the project or cause you’re supporting.
We, at OpenGrowth , are constantly looking for trending start-ups in the ecosystem. If you want to know any further information about the startup ecosystem, then do let us know in the comment section below.
About the Author : Amrita Sinha
Amrita is in the field of media. She has a deep inclination towards writing and public speaking. She has the aim of removing the stereotypical mindset of society. She loves to read and photography is her passion.