Crowdfunding is a platform for many entrepreneurs and small companies to access funding for their ideas and projects. Instead of collecting huge funds through a single bank or angel investors, companies opt for Crowdfunding. In this model, entrepreneurs and small businesses gain a small amount of money from a lot of different people, as opposed to traditional ways.
Crowdfunding is not a new theory and can be traced back to hundreds of years in various different areas, especially for 'past times' authors trying to get funding to publish their books. However, early online crowdfunding claimed by ArtistShare. To know more about crowdfunding visit https://www.samitpatel.net/.
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From the launch of ArtistShare, more programs come to existence and now platforms facilitate the financing of charities, businesses, and ideas. These platforms serve as a point of meeting between those who are willing to invest and those who need funds. Due to these platforms, it is possible to create campaigns and draw the much-desired funding that entrepreneurs need to launch.
However, these platforms do not operate for free. Typically, they charge a percentage of the total funds generated for a campaign. Most platforms set a time period required for the campaign to achieve the investment objective, which generally goes from 30 to 90 days.
Some crowdfunding platform operates on the principle of flexible funding, which allows you to keep the money raised independently of having reached the proposed funding target or not.