crowdfunding Archives - Page 4 of 4

Why Is Crowdfunding Important?

We here at MyEFunder get this question a lot. It really depends on what type of crowdfunding we are referring to. There are four major types of crowdsourcing (with multiple sub categories in each) and we will go over all 4 of them so you get an idea of which one is best for you.

Four Basic Types of Crowdfunding:

Donation Based Crowdfunding is where you create a campaign for a personal cause, whether it be for your self, a loved one like a family member or friend, for a business or a charity organization. Usually these funds are donated from your network of social circles and are usually donation based. This means that the people giving the money do not expect anything back in return. They are giving donations based on the goodness of their hearts for that specific cause. This idea is very similar to the GoFundMe (go fund me) style of crowdraising. A great example of this would be MyEFunder.com

Reward or Idea Based Crowdsourcing is where people give funds (backers) for a specific idea and in return, they get a reward for the specific amount given. The reward could be something as simple as a thank you, or it could be as big as having lunch with the inventor / owner of the project. A famous idea that got the attention of a lot of backers was Oculus Rift which was started on Kickstarter, which facebook.com bought for $2,000,000,000. That’s right 2 Billion Dollars US. Not only did the idea gain exposure and come into fruition, someone’s dream came a live and the backers rewarded from it as well by making it happen. Do you want to see what else is out there, please visit rewards.myefunder.com for more details