KNOWING MORE ABOUT CROWDFUNDING.
Crowdfunding is a process or a platform where people raise money in large numbers and later use that money to finance their businesses. People are able to raise money with the help of the internet. There are other means that can be used for crowdfunding as long as people understand each other. In the recent years crowdfunding has become a trend in the business world. In the US, there has been a research that has been conducted and it shows that there are over 600 million dollars that have been collected by business men using these platform. This is a clear indication that crowdfunding is here to stay because it represents a major funding for businesses. It is also a source of funding for the non- profit who are seeking contributions and for artists who are seeking recognition for the creative efforts they have.
There are so many crowdfunding platforms that are used such as Kickstar, Indiegogo, and LandingClub. In crowdfunding platforms donations are sought and the members get a special compensation for their efforts. The platforms have the same general concepts although their terms are unique. Another use of crowdfunding platforms is correcting loans and royalty financing. Taking an example of a platform like Lending clubs where the members are given a chance to invest directly and borrow money from each other. The crowdfunding platforms are able to benefit because they have been able to eliminate the presence of middlemen in their transactions. The idea behind such a platform is to bring business owners and investors together. The main aim of LendingClub platform is selling the company shares or the ownership stake in the company on the crowdfunding websites.
The main role of crowdfunding is assisting in startup or early-stage companies an opportunity to launch their products and services without exposing the entrepreneur loan officers who are offering them with the loan. If a Crowdfunding platform is successful it offers businesses with the financial support they need and it also creates a base for customers who feel it is their duty to patronize the business for they have a steak to be successful. There are so many advantages associated with crowdfunding for it has helped a lot of people start their own businesses. Crowdfunding can be a waste of resources if the campaign of crowdfunding is not well arranged. Each and everything that have advantages have disadvantages too. If you want to succeed in the crowdfunding campaign you can involve family members, friends, and well wishers who will be willing to share your business passion with you. Friends, family members and well wishers will be your number one encouragers and they will encourage others to join the platform on your behalf for you to be successful in the crowdfunding platform.