KNOWING MORE ABOUT CROWDFUNDING.
Crowdfunding can be defined as a platform which people use to raise money in large numbers which help them 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 business world, crowdfunding is becoming a thread. 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 an indication that crowdfunding is here to stay and it represents a major and a new source of funding for new businesses. This also, happens to be a non -profit funding to people who are seeking contribution and to the talented artists who are seeking recognition for their creativity.
Some of the Crowdfunding platforms that is commonly used are Kickstart, Indiegogo, LendingClub, and fundable among others. It is on these platforms that donations are sought in return you get a special compensation. Each and every site have their unique terms but the general concepts in all the platforms is the same. Another use of crowdfunding is it be used to collect loans as well as royalty financing. For instance, a site like LendingClub gives its members a chance to directly invest in 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. Businessmen and investors are given a chance of coming together through these platforms. The main aim of LendingClub platform is selling the company shares or the ownership stake in the company on the crowdfunding websites.
This is a worthy platform because it provides 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. A successful crowdfunding campaign 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. Some of the advantages of crowdfunding is helping others start up their own businesses. If a crowdfunding platform is not well arranged it can be a waste of resources. Despite the advantages of crowd funding it also have its own disadvantages. Involve family members, friends, and well wishers who will be willing to share your business passion with you in your crowdfunding campaign if you want to be successful. They will also help you continue the campaign as they encourage others to join the platform.