It is a process through which people give a small amount of money to collect a large amount of money for a cause. It is form of alternative finance and crowdsourcing. There are several kinds of crowdfunding, the internet being the main. It consists of 3 parties- the party that will be getting the money, the party that will be arranging the crowdfunding by providing a platform and the people who will be contributing for the cause. Crowdfunding is done for several causes including travelling entrepreneurial ventures, medical reasons and others. Crowdfunding is a very important way of collecting money.
Crowdfunding in India is essential because most people are below the poverty line and can’t pay their medical or other bills. Crowdfunding in its raw form has been around for quite some time. Fundraisers, crowdfunding in India have known to collect money from the people by showing their medical bills for quite some time. However, doing it with the help of internet increases its legitimacy and makes everything happen in a more organised way.
Crowdfunding can also be of importance if you are trying to start a business because crowdfunding can also increase the customer base and make more people aware of the initiative. Crowdfunding is basically of the people, for the people and by the people. Everything in crowdfunding is about the people. So building communities through meaningful causes is also a part of this endeavour. From volunteering in and our children’s school to contributing to local causes, we do so much to actually contribute and give back to our community.
As human beings and social animals, it is our responsibility to give back to the society and communicate with others. Crowdfunding can not only help us with giving back to the society but also build a community by bonding over causes we care about. While several people come together to actually fund the causes they care about, it is entirely possible to form bonds and relations we otherwise might not find in our everyday lives. In 1885, the people of New York used crowdfunding to pay for the Statue of Liberty’s pedestal.
Imagine what kind of positive or historical impact one can make in their neighbourhood with modern day crowdfunding. Today, social media catapults crowdfunding’s reach, making it easier to rally people behind our projects. There are so many ways in which we can make a change through crowdfunding. It helps make our lives more meaningful.
The benefits of crowdfunding are several. Be it entrepreneurs or artistes, crowdfunding helps everyone equally. It has become a part of our society. If you haven’t already figured it out, here are a few pointers that crowdfunding helps you with: 1) It’s more efficient than traditional fundraising.
2) It’s a place to build traction, social, proof and validation.
3) It is a place for crowdsourced brainstorming to refine your idea.
4) It gains you early adopters and loyal advocates.
5) It doubles marketing and media exposure.