Everything about Crowdfunding and Crowdfunding Websites

In earliest time to raise funds for your dream project or lifelong project was quite difficult. No matter, how much talent you have. In addition to that, it was very difficult to brought sponsorship to your dream project if you were from remote part of world. Because of that, lots of dreams was only dreams, no reality had developed from them. However, these things changed a lot in today's world only because of Crowdfunding. 
Crowdfunding




Crowdfunding is something related to ask peoples crowd for donation of specific defined amount for certain cause or project. In exchange to that donor will liable to get some benefits or rewards.

Hence a talented person without resource could gather huge interested crowd for project investment. This is possible only because of crowdfunding websites.

For example, if you are a film maker and want to make a documentary film on peoples, who are living in slum areas. But you don’t have sufficient amount of money then you could raise that required amount of money through crowdfunding campaign.

There are three general categories of crowdfunding: Equity, Donation and Dept based crowdfunding.

Crowdfunding


(1) Equity Based Crowdfunding: In this category people invest their business, opportunity, ideas in exchange for equity. Equity likes shares in project. If project get successful then values of shares goes up if not then down.

(2) Donation/Reward based Crowdfunding: People who believe in cause like to invest or donate. Rewards may be offered to such donors. As an acknowledgement they get tangible and non-monetary rewards like free gifts, regular news updates, tickets of event, t-shirts, e-card, finished product, pre-released CD and so on. In such type crowdfunding donors are not expecting anything in returns. They only donate to help.

(3) Debt Crowdfunding: In this type of crowdfunding, investors invest or donate for business project and after successful completion of project they receive financial return with interest. In addition to that investors get benefit of contribution in idea they believe.


(A) Good things about Crowdfunding:


-It is useful for fundraising in creative projects, business, disaster relief and start-ups.

-It is a platform to market project, receive funds and produce interest.

-You can get useful feedbacks from crowdfunding backers.

-In case of crowdfunding there is not discrimination and limitation for certain types of projects. Great ideas always get attention of crowd.

-Crowdfunding could be effective, fast and efficient; but there could be minimum amount of risk.

-You'll get funded if you have more creativity.


(B) Bad Things about Crowdfunding:


-Do you know about copycats? If not, be aware of them. Crowdfunding your project means open your project for everyone. Definately your ideas get exposed to everyone as well as to potential copycats. These copycats could steal your ideas.

-This platform could limit funds. Also it could be very difficult to work with crowdfunding taxation and regulation.  


(C) History of Crowdfunding:


If I am not wrong and as per my information the first crowdfunded project occurred in year 1997 for Rock Band Marillion. When they released their seventh album and they were not in state to afford tour and play in US. US fans raised fund $60,000 by using fledgling internet so that they could play.

Whole activity was done by fans only and band was not involved in first round of easy fundraising. However, since that time band followed this method to produce their next three albums successfully.

Same suit of technique have followed by other creative projects like film and journalism. I think, first crowdfunding website stared in year 2001 and up to 2012 there were over 500 websites worldwide. And in same year 2012, February one project raised over £1,000,000.


(D) Things you need to know about crowdfunding


I've explain each and every thing about crowdfunding in simple terms. If you find any doubt then convey through comment box.

Let us understand function of crowdfunding through an example. Consider yourself as an organization or an individual with a cause; but you don’t have any resource to convert it into reality. Then crowdfunding website could available you resource you want.

In Simple words, you want to work on project/business and for that you don’t have money. Then you could post that project to crowdfunding sites for fundraising or for getting investors or donors.

So these three groups could make your project successful, they are crowdfunding websites, organization that wants to raise money for a cause or a project and people from around the world which are going to donate money.


(E) Which types of project are suitable for crowdfunding?


You need not to categories any project for that. Every types of project are acceptable on sites. As I said earlier in article that only Good Ideas matters. But here, I will like to mention some evergreen project categories where you can easily raise your funds. These categories are Short Film and Documentaries, Music videos, non-profit projects, NGO'S, Books & Publishing and Start-up companies.


(F) How to Start Campaign for Fundraising


If you want some fund for your project or start-up then go to crowdfunding sites which I have mentioned here in following paragraph. Make your account their and click on start project. Mention out every possible information about the project like description, photos, videos and audios. If possible create a demo over project. And don’t forget to mention amount that you want to raise. You can’t expect that people start donating for your project. You have to make contact with every possible person who wants to donate by social media like Facebook, Twitter and also by giving pamphlets, distributing cards and organizing seminars.


(G) Top 10 Crowdfunding Sites for Crowdfunding


Do you know that the businessmen use different crowdfunding sites than musicians? Yes they are. Musicians are using different one for their causes and charities. Crowdfunding sites with different focuses and models are given below.

(1) Kickstarter: It is one of the experienced platforms which believe in strong growth. Kickstarter had broken out large campaigns in past few years. And one more thing Kickstarter platform is not for your cause, charities, personal and business financing needs. It is a site which provide platform to creative projects and fundraising through donations only. Creative project ranges are like pre-selling videos or music album, cool gadgets and installation of an art.

(2) Indiegogo: Except investment you'll find everything. Indiegogo had international growth due to its early start, broad access and flexibility. Actually it approves campaign only for donation based fundraising in every aspect. Like personal finance need, hobbyists, charities and things you can think except investment.

(3) Crowdfunder: It is totally different from above two. It is a platform for investors only. You could say crowdfunder as a fastest growing network for investors. It offers equity based Crowdfunding.

(4) RocketHub: Various wide varieties of projects are powered by Rockethub with donation based funding. The unique feature of Rocketub is their LaunchPad and FuelPad programs which allow campaign owners to collaborate with marketing and potential promotion partner to make campaign successful.

(5) Crowdrise: You would find donation based funding here also for cause and charity. The Crowdrise system tracks that how much the members and organization are making unique charitable impact.

(6) Somolend: If you want to lend small business in US then Somolend is one for you. It also provides funds on debt based investment to some qualified businesses. Somolend is partner with banks and provide loan to small businesses. Furthermore it is helping to them to bring their family and friends into efforts. It is a leading participant in JOBS Act legislation and now it is expanding in multiple cities and markets in United States.

(7) appbackr: The site is backing for mobile application development. If you are person want to build next mobile application and seeking for donation based funding then appbackr is best choice for you to get the things growing.

(8) AngelList: If you are belongs to tech startup which has already leading investors and looking for momentum. Then AngelList might help you as angels and institutions are finding investments through AngelList. Actually AngelList was looking for investment in tech startups; hence they had not told that they did crowdfunding. But now they are establishing into the game . You could see that investors and institutions on AngelList have been funding for tech startups deals.

(9) Invested.in: It is Venice, CA based "white label" Software Provider Company. Aswell it is a crowdfunding community which supports donation based fundraising. In fact, company is providing you, tools to get started and grow on your own.

(10) Quirky: If you like to invent or to make something good product to life then Quirky could help you for donation based funding. Quirky is a site which deeply involves in the process of invention and allows other community to get participating in it.

This is all about top crowdfunding sites worldwide.  No matter, if you like to fundraise or not; just go there and if possible try get involved this collaborative activity.


(H) How to Launch a Successful Crowdfunding Campaign:


You might have read lots of blog posts on crowdfunding campaign and how to run them successfully. You'll find that none of those blog posts are that much effective. Reason behind that they are too much theoretical rather than objectives. Don't worry; here I have kept some practical views about How to launch a successful crowdfunding campaign. Tips which have mentioned here are used by many successful campaign organizers. Simply follows these tips to run a successful campaign.

(1) Develop a Real Narrative Story: Yes, it is a key factor to break your project. If you manage to convince people with your story then it will not that much difficult for them to donate your cause. Remember your story could be real, it must relate to people and easy to understand.

(2) Right Pitching is everything:So after developing a good narrative story pitching is important for every manner. I suggest you to pitch in that manner so that the story directly strikes to your follower. You could use introductory video for pitching purpose. Perhaps pitching is not that much easy. Remember success of crowdfunding project somewhat depend on pitching also.

(3) Take care of budget: Budget could increase at any time so never underestimate the budget. So figure out budget in the manner that it would run your campaign smoothly.

(4) Choose right platform for your campaign: I have mentioned above about different crowdfunding platform with different purpose. So choose your platform which is matching with your campaign ideas and followers type. Because of that you could reach out to millions of people of same interest.

(5) Transparency is important:So once you launched your crowdfunding campaign and established it under public domain. Then you need to keep your project activity transparent so that followers could trust on you. Remember maintaining transparency is too much important for your campaigns success. If you are unable to maintain it, then it could be difficult to survive your project. It might be fail at early stage of starting.

(6) Promotion of Campaign:Near about 70% of campaigns have failed because of not having proper promotions. After launching the campaign, if you sit ideally then it would be very difficult to fundraise. Most of people don’t know how to promote. If you are one of them, then start learning this process. There are infinite ways to promote. One could write a whole book on that. Proper use of internet, offline source and mainstream media could help you to overcome this problem.
This is all about to launch successful crowdfunding campaign.

We are continuously updating on this topic. Stay tuned with Incisivea.

Topics to update in same article:
(1) Top 15 Successful Crowdfunding Campaigns

(2) How Crowdfunding Is Shaping a New Economy

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