The Truth About Crowdfunding

The term crowdfunding is usually on everyone’s lips. With regards to financing start-ups and founders, crowdfunding has long since established itself. In our brand-new series we explain everything around the topic, today: Crowfunding Concept and Basics .

In addition to the classic crowdfunding , there are also crowdinvesting and crowdlending . We provide light into the darkness and describe you the different conditions and possible systems.

What is crowdfunding?

Crowdfunding can financing tasks, products, startups and much more. The special point about crowdfunding is normally that a huge number of individuals – the group – financially support a task and be able to understand it through a flock financing. Classically, crowdfunding tasks are arranged via the web. In most cases, there is a minimum amount defined in advance, which should be reached in a predetermined period of time to ensure that the task to be recognized. If the prospective amount isn’t reached, the supporters will get their money back. If it’s possible to financing the project through the crowd, the supporters will most likely receive something in return from the project initiator, which can undertake the most different forms. This could be eg a general public personal thanksgiving,

Which characteristics are there?

Classic crowdfunding: supporters receive a nonfinancial thank you (eg duplicate of the task result)

Crowdinvesting: Supporters get shares in the project

Crowdlending: Audience lends cash to task initiators, which will be repaid later

Donations Crowdfunding: Donation, without materials or financial consideration

Marketing as successful element for crowdfunding projects

Among the often underestimated elements in crowdfunding is definitely advertising for the advertising campaign. Without a corresponding level of awareness, the mandatory investments will be missed.

Exactly like marketing for your own startup, several channels are for sale to success. They are first your very own site and a possible blog. All interpersonal media activities also needs to end up being aligned with the ongoing crowdfunding campaign. Classical PR channels such as for example newspapers, TV and radio are also to end up being mentioned, so long as a thematic proximity is definitely available. Furthermore, networking in immediate contact is among the most important factors.

In summary, it can be stated that relevant stakeholders need to be addressed immediately to guarantee the achievement of a crowdfunding advertising campaign.

You would like to learn about crowdfunding ? Or would you like to begin a 5050 crowdfunding review yourself, but have no idea yet how? Do you have any questions, such as: crowdfunding or crowdinvesting – which type is suitable for my project?

Leave a Reply

Your email address will not be published. Required fields are marked *