What is Crowdfunding?
Crowdfunding is the practice of funding a project or venture by raising monetary contributions from a large number of people performed via the internet. Crowdfunding is a form of alternative finance, which has emerged outside of the traditional financial system. An entity or individual raising funds through crowdfunding typically seek’s small individual contributions or investment from a large number of people. Touted as a game-changer the idea of crowdfunding has created a wave of disruption across all industries.
Campaigners share information about a project, cause, idea or business with the public and then the public use’s the information to decide whether to fund or invest in the crowdfunding campaign based on the collective “wisdom of the crowd.”
Types of Crowdfunding marketing that we cover:
- Reward-based – Non-financial rewards (e.g., products below MSRP)
- Equity-based – Equity returns (e.g., shares, dividends)
- Donation-based – No rewards ( Help, Support and Good Will )