Original Content- Business Upside
A popular form of fundraising on social media, crowdfunding has seen a meteoric rise in the past few years. Crowdfunding across the globe is fragmented, and vendors use several organic and inorganic methods to raise funds in the market.
What is Crowdfunding?
Crowdfunding meaning in simple terms is raising money online. It can be for a social cause, creative pursuit, business startups, or non-profits. People use crowdfunding websites to connect the audience on social media and take support for achieving the mission. Both individuals and businesses can raise money online. There are several websites in different categories, and they take fees or processing charges. This could range between 3% to 5% per transaction or a percentage of funds raised monthly.
Types of Crowdfunding Websites
Crowdfunding comprises three major types – equity, debt, and reward. Reward crowdfunding is raised through supporters who, in return, get a product sample or gift if they donate a certain amount. In debt crowdfunding, it is a loan to be paid back. In equity crowdfunding, a portion of the business owner is given to the investor.
The advantage of crowdfunding for business is that it allows a large number of investors with lower contributions rather than just a few who fund the entire venture. And it is also quicker than conventional funding.
So, when you are looking for a website that will help you raise funds for your cause or startup venture; look for its expertise and the fees they take for the money you get from the platform.
Comments