Definitions Of Crowdfunding

The term crowdfunding is certainly on everyone’s lips. With regards to financing start-ups and founders, crowdfunding provides long since founded itself. Inside our new series we describe everything around the topic, today: Crowfunding Concept and Basics .

As well as the classic crowdfunding , there are also crowdinvesting and crowdlending . We provide light in to the darkness and describe you the various terms and possible platforms.

What’s crowdfunding?

Crowdfunding can finance projects, products, startups and many more. The special point about crowdfunding is that a sizable number of individuals – the group – financially support a task and make it possible to recognize it through a flock funding. Classically, crowdfunding projects are organized via the Internet. In most cases, there is a minimum amount defined beforehand, which must be reached in a predetermined time period in order for the project to be recognized. If the prospective amount isn’t reached, the supporters will get their money back. If it is possible to financing the task through the group, the supporters will most likely receive something in return from the project initiator, that may undertake the most varied forms. This is often eg a public personal thanksgiving,

Which characteristics are there?

Classic crowdfunding: supporters get a nonfinancial thank you (eg duplicate of the project result)

Crowdinvesting: Supporters get shares in the project

Crowdlending: Audience lends cash to project initiators, which is repaid later

Donations Crowdfunding: Donation, without materials or financial consideration

Marketing as successful aspect for crowdfunding projects

One of the often underestimated elements in crowdfunding is marketing for the marketing campaign. Without a corresponding level of awareness, the mandatory investments will end up being missed.

Exactly like marketing on your own startup, several channels are available for success. They are first your very own site and a feasible blog. All cultural media activities also needs to become aligned with the ongoing crowdfunding marketing campaign. Classical PR channels such as for example newspapers, TV and radio are also to be mentioned, provided that a thematic proximity can be available. Furthermore, networking in direct contact is among the most important factors.

In summary, it could be said that relevant stakeholders have to be addressed immediately to ensure the success of a crowdfunding campaign.

You would like to learn about crowdfunding ? Or do you want to start a 5050 crowdfunding review yourself, but have no idea yet how? Have you got any questions, such as: crowdfunding or crowdinvesting – which type is suitable for my project?