What is crowdfunding and how does it work? How to create crowdfunding profile in India?

If you ask any business person that how was the condition while collecting funds for their start ups, if you have we'll set financial background then this blog content may not be possibly guider for you, but need funds for your startup then this ideas could be one of them,

As you know, competition for funds collection for similar topics gradually in increasing trend from few years and it will remain same.  Of course, but one of the best topic or way of presentation can get change of getting funds from interested parties in competition.

Let’s know about this way in details which named as crowd funding,

what is crowd funding and how does it work?

Crowdfunding is a method of rising funds from various people on various platforms with small amount in higher level that’s what we call crowd and such kind of fund raising named as crowd funding.

In practical way, every person from your influence area can contribute money in it, it may be from basic amount of one dollar to lakh rupees, depends on how you have demonstrate your idea in front of them.

Most crowd funding are raised through Internet mode, which executed through mail order & subscriptions theory as well as by on line events or event programs

Mainly in crowd funding, three person or three stage people involves,

• Initiator: of whose this idea it is,  
• Group or individuals who supporting to this project.
• Last ones are- Moderators who brings different parties together to execute your idea.

One thing different from this information is; crowd funding was in pattern from last few decades but from initially it was noted as MOZART.

This practice has been beneficial for natural calamities, medical causes, as well as social welfare purpose

Mostly crowd funding provides second chance to people to raise themselves from problem phase.  Natural calamities like- tsunami or fen storms, medical causes- Heart transplant or major operation drives, medical issues in African or Somalia countries, any medical dieses in Asian countries, Social welfare like raising funds for poor Child for education or funds for girls empowerment in rural areas of Asian countries  also can help to NGOs fulfill their initiatives related to children’s education, women’s welfare, etc. and aided people in their projects such as paying off college fees, traveling abroad etc. 

Types of crowdfunding 

• Donation-based- This is used in form of social cause, like such as medical, non-profits, charity, medical, and disaster-relief.  In this way, executers don’t have to return the funds to his/ her donors, this may changes from season or conditions

• Reward based crowd funding – This is same as donation base fund raising, in which investors are investing fund in your idea only change point is, you have to revert back few amount of share in term of reward.  But they are not as owner.

• Equity based crowd funding – In short investors are becoming part of your company by investing, & they too receive share of profit that company makes, just like we getting dividend on annual growth of business

• Debt based crowd funding-  Its just like banking system, investors are their money into your idea on basis of some fix interest & which benefits to investors with better return of investment, for them your idea is like one of source of income where it will be like loan from bank

Now let’s know about things basic steps about raising funds,

1: Attractive headline

Catchy headlines are cracks story easily, so write key point in one line

2: Add pictures and videos

Obviously pictures are making story more powerful than normal written story.

3: Add a goal amount 

Always set slight higher amount than you required as considering bank charges & currency fluctuations  

4: Share and promote your fundraiser 

Funding peoples are always curious that how we spending money as well as how we displaying our work by their money, so by using social media platforms, like FB or whatsapp groups share their details as well as share their details on website also

Advantages of Crow funding-

1. It can be easily raised fund through this so no specific documents  required for this
2. Your organization can easily gain attention through this kind of social projects into market, as well as mouth publicity or work can easily achieve.
3. By sharing your idea, you can easily get expert advice from senior members in market
4. Its good platform to enhance your importance in market by launching social projects, welfare work also carried and marketing also achieved,
5. Investors are always tracking your progress, so this can also help you to grow your market
6. Your investors can become your loyal customers by connecting through financial progress

 Disadvantages

1. It is not necessary that you can get easily investors, sometime you have to do struggle for it.
2. Initial time its take more time & money for invest from your side
3. If you not achieved funding target, in that case you have to return other investors money too
4. If your projects fails, that may cost to damage reputation of your business
5. If you not secure your idea by copyright or patent then its has severe chance or stealing by others

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