Have you always wanted to be an angel investor, helping fledgling business get a head start? If you don’t have the millions to do so, you can always venture into crowdfunding. For as little as a fiver, you’ll open opportunities for start-ups.
It’s a practice of raising funds via the internet and through the efforts of contributors (people or organizations). There are plenty of crowdfunding websites that you can sign up with, including gofundme, KickStarter, Indiegogo and YouCaring.com. However, different websites cater to different projects, some of which are only specific to creative, personal or business-related. This is why you need to research about your options.
What are the types of crowdfunding?
This method of raising funds comes in two types: for financial return or for a reward. To get financial return, crowdfunding is done either through equity or a debt. The former involves buying shares and then gaining profit by either selling it or receiving dividends. The latter, on the other hand, involves providing a loan that is repaid over time and with interest. When it comes to rewards, it can be anything from receiving a particular product to an opportunity to get involved in a project.
What’s your role as part of the crowd?
You are the trigger that can launch a fund-raising effort for a project or business. You will act as an agent, selecting, promoting and influencing the ultimate value of what the crowd offers. Depending on the type of crowdfunding you choose, you can be a donor, shareholder and promoter.
Do you have what it takes to be a crowdfunder?
Aside from being passionate about a particular project or company, there are several distinct traits that individuals participate in crowdfunding have—innovative, social and motivating. Now that you know all about this very inspiring funding practice, it’s time to get started.