Crowdfunding is a fantastic way of fundraising. It is one of the most innovative ways to raise funds. Over the years, crowdfunding has seen a substantial growth in India.
The startup culture was shaping up, giving rise to many big brands like Flipkart, Snapdeal.etc.
In a similar fashion, the country also witnessed a rise in crowdfunding websites. Many new platforms were coming up competing against each other, trying to shape up an alternative way of fundraising. This industry has boomed and crowdfunding now is a million dollar industry.
What is crowdfunding:
Crowdfunding is the practice of raising funds for a project with the help from the people. One can raise funds in many different ways, crowdfunding is one such way. In order to execute a crowdfunding campaign, one must decide on many factors.
The first factor to decide is whether the crowdfunding campaign should begin online or offline. Offline crowdfunding has got its own advantages but, it can prove to be a costly affair. That is why online crowdfunding is popular as it won’t burn a hole in your pocket.
How does crowdfunding work:
You start off either by making your own page which allows people to visit and donate. Otherwise, you can make use of a crowdfunding website which will suit your need. There are many crowdfunding websites depending on the category of your project.
Milaap comes first on this list with having raised more than 170 crore rupees to its beneficiaries. One can start their campaign easily, by just clicking on the “Start a Fundraiser” button.
crowdfunding for a startup business:
Startup India, standup India is the new mantra of the town. It is an excellent initiative for empowering people to begin their entrepreneurship journey. Some of the world’s largest brands are now realizing the potential of crowdfunding.
If you’re a startup, you might be looking up for funding either from unreachable investors or willing to undergo the complex process of getting a loan from a bank. As a startup, one can incorporate crowdfunding techniques to raise funds for their projects.
The advantage with this is even before your product is launched in the market, your brand gets significant outreach.
Similarly, crowdfunding can also be used as a replacement for business loans. Crowdfunding can be implemented not only by startups but small scale businesses as well.
The rise in technology:
Many people around the world are now using crowdfunding for various needs such as:
- -Crowdfunding college debt
- -Crowdfunding personal loans
- -Crowdfunding business loans
- -Raising funds for nonprofits and even crowdfunding for real estate investments.etc
Over the years, India witnessed a rapid growth in the field of technology. People are being driven to use smartphones thanks to the substantial amount of growth in the corporate IT sector. This has allowed more people to get internet access even in the remotest of places. One can contribute to a cause from any corner of the country.
These crowdfunding websites provide easier modes of payment such as debit card and even recently, sites like Milaap also accept payments via Paytm cash. Transactions just take few seconds to complete and it is secure. It is constantly monitored which has further reduced fraudulent activities.
These crowdfunding websites also partner with companies for CSR initiatives. Companies have started looking for crowdfunding for their CSR campaigns as it has a lot of potentials.
Similarly, People can solve problems by setting up campaigns on crowdfunding websites. People can solve problems around them, which are present in their society, such as, fixing any historical monument or preserving heritage, or cleaning up the nearby lake.etc
Overall, one must make use of these crowdfunding sites to raise funds easily and effectively for their project.