ne of the most effective ways to raise capital
Crowdfunding is the cooperation, carried out by people who make a network to raise money or other resources. The Internet is often used to fund efforts and initiatives of other people or organizations.
This procedure was born from the first Open Source projects where the developers initially offered their work freely. After this, due to the success of their creations and also the work that this entailed, they began to ask for donations and the response was again, greater than expected. At that moment, between the creators (who required funding) and the users (who demanded creative projects and paid for them) was born the Crowdfunding, as a new option to finance, at first for creative projects.
Today, there are more and more crowdfunding websites and more projects financed in this way, something that represents a new revolution in all sectors in which we move.
How does crowdfunding works?
- The entrepreneur sends the project to the Crowdfunding platform. Indicating description, the amount needed, time of collection, rewards …
- Some are valued in a community way; others are valued by the Crowdfunding platform…
- The project is published for a specified time, 30, 60, 90, 120 days.
- It is promoted as much as possible.
- End of term. Financed or not.
We list some of the Internet’s best crowdfunding sites.
The company has raised over $4 billion with more than 155,000 projects funded since its inception in 2009. Potential funders can browse several verticals from arts and film to publishing.
Is the world’s largest online campaigning platform focused on social, political, and cultural issues.
The crowdfunding site collects a 2.9-percent processing fee and 30 cents for every donation. As it’s not an all or nothing fundraising site, you keep everything that you raise.
It is best for entrepreneurs who are looking to scale as opposed to develop their ideas. The selection process is fairly competitive, and you also need to have a revenue of at least $1 million to be listed on their site.
Using a crowdfunding platform – to generate initial funds – is an excellent opportunity for you to fuel your idea and accomplish your dreams. But before you start, find the best platform for your needs comparing the best online platforms by fees, features, support, and more.