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Crowdfunding is the practice of funding a project or venture by raising small amounts of money from a large number of people, typically via the Internet
Crowdfunding is a form of crowdsourcing and alternative finance. In 2015, over US$34 billion was raised worldwide by crowdfunding. Although similar concepts can also be executed through mail-order subscriptions, benefit events, and other methods
Types
The Crowdfunding Centre’s May 2014 report identified two primary types of crowdfunding:
- Rewards crowdfunding: entrepreneurs presell a product or service to launch a business concept without incurring debt or sacrificing equity/shares.
- Equity crowdfunding: the backer receives shares of a company, usually in its early stages, in exchange for the money pledged.
6 Key Strategies to a Successful Crowdfunding Campaign
1.Do your research
2.Choose the right platform
3.Offer more than just an idea
4.Know your target audience
5.Create marketing materials
6.Make the reward worthwhile
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