When Apple came out with their new phone 5s on September 20, a new trend started among the hackers. A website for ethical hacking asked hackers to breach Apple’s newest venture ‘Touch Id’. This site was completely funded by Apple enthusiasts as well as haters. The winning hackers would get $15,000, a whisky bottle and even a sex book! The crowd was wild, and the funding was great.
In today’s world crowdfunding has become an important word in netizens’ lexicons. Whether you want to start a novel activity or whether you want the world to see something innovative, and whether you would want funds to kick start your business; the answer lies in crowdfunding.
What is crowdfunding?
As the name suggests, it is the means of generating funds for any deed by taking help from a crowd, and in this case, it involves taking donations and help from the people on the internet. A group of investors, a group of artists, or even a group of common World Wide Web users can be a source of generating money for you. The only way you could do this, is being genuine and working actually at the level you have promised. Once the target audience or clientele sees that you are genuine and willing to work, there would be no dearth of any kind of income.
How do you ensure that your techniques for funding will work?
There are plenty of websites and platforms available on the net which will help you gather the necessary funds. But selecting them is the first step and you need to be very thoughtful when you do so. Select a platform based on your priorities. Calculate and analyze your funding needs and only then use that platform.
People or contributors and investors will obviously look for some perks which they can avail once the business is up and earning. Make sure you have something in store for your investors, a little perk here can go a long way in helping you learn the basic rules for attracting better funds. Most investors are looking for innovations and fresh ideas. Your strategies should not be hackneyed and you should have a way with the customers. Connect with them, pay attention to them and then reap the benefits!
Benefits of crowdfunding for a budding company:
Once you have realized the way you can tap into the magic of crowdfunding, you will be reaping the benefits of it for a long time to come. There are various advantages of crowdfunding. These are few of them:
It can strengthen an already existing company: Sometimes, it is always better to get some more cash in hand and get an upsurge. Many existing companies thus strive for crowdfunding to increase their funds and work better.
Freedom from bank loans and installments: Getting funds from the crowd or investors will help you achieve your daily finances and at the same time, free you from the shackles of loans and installments. Now, you no longer have to depend on the banks for getting that new product launched. Your users and viewers can help you out.
Publicity Galore: It can also help to project your company among many interested investors.