It is a way to finance and raise capital through friends, family and investors. It is done through cyberspace like virtual networking platforms .
This is a modern method and contrasts with traditional methods of financing to start a business or produce a product.
In the past, to start an economic and commercial activity, you needed to have a business plan, conduct market research, produce a product sample, and finally try to attract an investor.
Resources that could be used to finance economic projects were banks, start-up companies and private investors.
It has been and is very difficult to attract the attention of these people and institutions, and therefore, there is a need for new ways to finance the launch of various economic projects.
It is very difficult to attract the attention of these people and institutions, therefore, there is a need for new ways to finance the launch of various economic projects.
Crowdfunding another form of outsourcing
With a public call on the Internet, different people voluntarily start financing a project.
Of course, there are disadvantages to this method of financing.
Therefore, the announcements and actions that exist in this regard can not be fully trusted. In fact, from the point of view of the person who is going to enter into this type of investment as an investor, the aspects of caution should be well considered.
What are the benefits of Crowdfunding?
Types of Crowdfunding
There are different methods and types of crowdfunding. Depending on the type of business, product or service offered, the type of use of this financing method will also vary:
· Donation-based crowdfunding
Donation-based crowdfunding means that investors participate in projects for which there is no return on investment.
In fact, it was done with benevolent intentions.
· Rewards-based crowdfunding
In this type of crowdfunding , in exchange for the capital taken from individuals, they are given products and services for free Or concessions are made for them to benefit from the products and services.
· Peer-to-peer lending
The crowd lends money to a company with the understanding that the money will be repaid with interest.
· Equity crowdfunding
In this method of crowdfunding, investors participate in the management and acquisition of part of the business.
What is the state of Crowdfunding in the world?
This method of financing is widely used in the world.
Forecasts show that by 2025, crowdfunding will become a $ 300 billion industry.
What is your opinion about crowdfunding?
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