Understanding the term
Crowdfunding literally means collection of funds from the crowd, which could be anything from $1 to $100 or even higher. The reasons for crowdfunding could be many but crowdfunding basics which have to be understood have similar pattern. Before starting for the fundraising, efforts should be invested to get acquainted well with the crowdfunding basics.
Crowdfunding basics say that there are returns and rewards associated with the term for the supporter. These could be in the form of a product, a souvenir, a service or for big project their shares. From crowd funding basics one also comes to know that why crowdfunding is a more convenient and smooth way to fundraise rather than angel investor and venture capitalist. The latter ones have stringent criteria and require sufficient high profile connections.
Who can do it?
Crowdfunding could be done by anyone who requires funds. It can be an individual with a fresh business idea, a charity organisation, a child requiring funds of school uniform, an artist, a musician etc. Hence, crowdfunding basics should have wide reach so as to benefit more and more people.
Where to do it?
At a very small scale and for a small requirement it can be done offline on the local level, but huge gainers require spreading their ideas far and wide. Assistance in every case could be provided by online crowdfunding platforms, which showcase the cause or project to garner funds for them. These platforms also guide about crowdfunding basics from time to time or whenever required by the involved person. A few crowdfunding websites whose crowdfunding basics guide could enhance the funds collection are MyEfunder and Indiegogo. Another kind of crowdfunding website is that which use the crowdfunding basics and the process for lending and financing. However, sites like MyEfunder are multifaceted and do all kinds of stuff related to crowdfunding.
Results of Churning through crowdfunding basics and implementing them
- If done with dedication and strategy:
The aftermath of implementing crowdfunding basics in such situation could be heart-warming and pleasant. The crowdfunding basics teach that a business carved out of the financial help from crowdfunding not only gains popularity but is also able to have customers, right from the pre launch. There are individuals spread across geographical locations who find their success in the success of the project funded.
- If proper plan of crowdfunding basics are not followed:
The crowdfunding campaign at times fails to garner support if the plot is weak and not well driven. If happens most of the times when people fail to realise and implement basics. There can also be chances of late realisation of fund goals, i.e. when you are done with the collection you get know that the sum is simply not enough.
Crowdfunding basics can be easily learnt from crowdfunding funding platforms. They guide their customers to every bit of implementing crowdfunding from ideas to behaviours. However, business advice and sense which are taught by angel investors and VC’s are much profitable and at this point they gain an edge over crowdfunding.
