Short Course on Crowdfunding – Getting to Square 1

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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. The internet is one medium that is used to raise money for it helps business people raise money. 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. There is a research that has been conducted in the US and it shows that there are over 600 million dollars that have been conducted using crowdfunding different platforms all over the world. This is a clear indication that crowdfunding is here to stay because it represents a major funding for 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. There are crowdfunding platforms that are used some of them being Kickstart, Indiegogo, and lendingClub. In crowdfunding platforms donations are sought and the members get a special compensation for their efforts. The sites have unique terms but the general concept in all the platforms is the same. Another use of crowdfunding platforms is correcting loans and royalty financing. For instance, a site like LendingClub gives its members a chance to directly invest in and borrow money from each other. They are able to do this because the presence of businessmen is eliminated in between the banking transactions. Businessmen and investors are given a chance of coming together through these platforms. Another aim of this platform is selling the company shares or the ownership stake in the company on the crowdfunding websites. The main role of crowdfunding is assisting in 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. The benefits if crowdfunding is helping other people start up their businesses. On the other hand it is a waste of time and resources if the crowdfunding process is not arranged well. The platform has so many advantages and on the other hand it has disadvantages as well. 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.

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