Why Is Crowdfunding Important?

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

 

  • Equity Based Crowdfunding is (more on this coming soon)

 

  •  Lending Based Crowdfunding is (more on this coming soon)

 

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9 thoughts to “Why Is Crowdfunding Important?”

  1. Earlier this month I had something tragic happen to one of the members of our family. And after reading this post “Why Is Crowdfunding Important?” I realized that I can ask for help. It was difficult at first because I am not used to asking others for help but when I emailed MyEFunder, they helped me realized that we all need help at some point in our lives. After the quick initial 5 minute setup, I had my very own personal crowdfunding campaign and my friends and family were more than happy to help. Not only did I get the financial support that I needed but I also got a lot of emotional support around the tragedy that we were facing. Needless to say that MyEFunder saved our family. Thank you.

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  2. I am an entrepreneur and needed money for my new project I was creating. I thought I could use gofundme but that is just for personal / donation based crowdfunding. I even tried kickstarter, indiegogo, and rockethub but they were too expensive and too many hoops to jump thru. After reading a post from MyEFunder on LinkedIn

    “How crowdfunding is benefiting Entrepreneurs? “In addition to raising funds, entrepreneurs use crowdfunding for proof of concept, early validation of their idea, or for receiving pre orders from potential customers.”

    I decided to go to their site and also came across this posts “Why Is Crowdfunding Important?” I decided to give it a shot and MyEFunder helped me raise over $50,000 in just a few weeks. They have such a huge community of backers that it was so easy for me to make the money I needed to start my new project and it’s up and running. New updates to follow soon. Thank you MyEFunder!

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  3. Hi MyEFunder Admin,

    My name is Ashely and I find your articles to be very helpful to my readers. I would like to set up a meeting with you to find out what we can do to work with each other and your site more accessible to my readers, maybe we can do a feature article for your site on http://www.huffingtonpost.com/ and then do weekly articles and see where we can go from there. Please contact me at scoop@huffingtonpost.com

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