How crowdfunding & fundraising is a game changing strategy?

There is a famous quote that “we can’t help everyone but everyone can help someone” by the renowned politician Ronald Reagan. This perfectly goes with the actual concept of Crowdfunding. When any new platform is discovered in the market, it has to face many difficulties and all human civilization has a tendency to criticize the weaker one. But the reality is a bit different. Crowdfunding is a strong strategy to accomplish an individual’s dream. If someone can use crowdfunding in a correct way, then it will be a real game changer for them. It will not just help you to gather resources, but it will give your project a new identity.

If you like technology you must hear about Pebble Watch, one of the most hyped smartwatch in the world. Crowdfunding plays a bigger role in its success. As per the market review it created a milestone by collecting 7 million dollars early orders within 12 hours. There are innumerous success stories you can find how crowdfunding helped people to reach their goal.

Crowdfunding is penetrating each and every sector you know about, starting from art project, entrepreneurship, medical, ministries etc. But the funny thing is that people still hesitate to be a part of crowdfunding. For an instance, in 1929 American stock market suddenly crashed and thousand of investors lost their money. For this reason the Americans had to face a depression at that time.

Good thing is that the government also encourages crowdfunding platform. After the depression, it was becoming very tough for the start-up companies to be financially stable. This is why investors also failed to invest in the capital market. But after the JOB- ACT 2012 April, government allowed start ups and small business owners to advertise that they are raising money and can receive invested money in exchange for equity money for the common public. So Crowdfunding become validated and setting up a business become easier in low cost.

How Crowdfunding will help start ups?

Crowdfunding helps startups and entrepreneurs to enhance or change their financial position. To set up a company or a business the first thing you must need is the capital and without resources a business can’t grow. Collecting money is a really difficult task for startups and it needs some kind of expertise to get the job done. But thanks to crowdfunding for making this thing so easier. The process is very simple. One just have to share their ideas to the crowdfunding organisation and they will take care of the rest. Some tactics crowding organisations follow are:

  • They will identify target areas.
  • They start campaigning for your projects online and offline too. The awareness process includes social media, newsletters also to get bigger exposure.
  • Getting potential investors.
  • Accomplish your project.

How Investors will be benefited?

It will totally change the investment sector. Not only a big investor, but it will involve everyone in the society who want to build their own projects. Now a days even online fundraising for ministries are becoming a popular approach in creating something generous for the society. The security system is changing rigorously to keep your investment. So the general public will get the scope to take part in the pre-fundraising activities of a start-up.