Crowdfunding: The Next Big Thing!

You must have heard about crowdfunding and its increasing popularity. Haven’t you? Well, before going ahead and start talking about the whole idea of crowdfunding, I would like to bring in some stats.

According to Technavio’s latest report, the global crowdfunding market is expected to grow at a CAGR of around 17 percent from 2017 to 2021.

In less than a decade, crowdfunding has become popular in many developed economies, including the United Kingdom, Australia, Italy, the United States and the Netherlands. Well, the whole world is getting inclined towards it. The phenomenon is catching up even with the developed countries.

Yes, there are people who are still sticking to the conventional sources of start-up funding. But, as soon as they will realize how beneficial can crowdfunding be for them, they will change their mind and switch. As they say – change is the only constant!

Let’s check out some quick facts about crowdfunding!

• It is all about raising money from a large group of people for a particular cause.

• It involves raising capital using the internet and social networking such as Facebook, Twitter or crowdfunding-dedicated websites.

• It helps small businesses and startups in increases their investment base and funding prospects.

• There are different types of crowdfunding such as debt based, equity-based, cause-based, and rewards based.

Why choose crowdfunding?

• It can be one of the quickest ways to raise finance with no upfront fees.

• Pitching a project through any of the online crowdfunding platforms can be a valuable form of marketing and may help you get a lot of media attention.

• When you share your idea with the crowd, you often get feedback and expert guidance on how to improve it.

• If you want to check the public’s reaction to your product/idea, nothing can be better than it. When people are keen to invest, you can make out that your idea could work well in the market.

• Ideas that may not appeal to conventional investors has more chances to get financed more easily.

• You can always find a loyal customer in your investor through the financing process.

• If you don’t have enough resources or whatever it takes to get bank loans or other traditional funding, it’s the best alternative finance option available to you.

You will get the benefits of crowdfunding only if you try it. Sitting on the fence won’t do any good to you. Well, a ship is safe in port, but that’s not what ships are for. Are they?