One of the biggest hurdles many people find themselves in when starting a project or an idea is funding. Financial funding plays a large portion in our society. No matter where you go, money never sleeps. It is essentially how the world works. But how does this help you? What if you are not one of the lucky ones born with a silver spoon? How can you possibly establish your idea with no financial funding?
With the new millennial age of advanced technology, many organizations, startup companies, products, and classrooms have benefited from the concept of crowdfunding. Crowdfunding is the practice of financially fund and establishing a project or venture by raising various small amounts of money from a large number of people, typically through the Internet. Think of this like donations. If you have a great idea, many people are willing to invest and donate a small financial portion so that they can see certain your company come to fruition. Many crowdfunding industries have grown exponentially over the past few years helping many people raise billions to fund their projects. These campaigns are usually broken up to specific niches such as: unique experiences, charity, social impact, consumer packaged goods, innovative inventions, gaming, startups, and much more. Without these sites, many innovative ideas would not have made it to our homes.
So how does this work? There are two basic crowdfunding models. The first model is the one people are usually aware of which is the rewards-based crowdfunding model. Rewards-based crowdfunding is where people can pre-purchase a product, buy various rewards, or simply donate to the company. These donations do NOT allow the funders an investment or shareholder with the company. This brings us to the second model, the equity crowdfunding. You may have heard of this in various shows like Shark Tank. This is when the donors are able to become shareholders in a company. In equity crowdfunding, companies will often sell ownership stakes online to require the necessary funds to make them operational and profitable.
Below, you will find four of the best crowdfunding websites to help start you off on your journey. Remember to be clear and precise about what you are planning on using the funding for. Donors want to know what they are investing in. Furthermore, make sure your message is strong and appeal. The best way to succeed at these sites is if your message truly impacts the public.
Kickstarter helps a variety of people is a range of interest. On this crowdfunding site, you can find artist, musicians, filmmakers, designers, charities, and consumer packaged goods that are trying to establish themselves in their congested markets. To date, Kickstarter has helped tens of thousands of create projects allowing them to come to life and impact the community for the better.
Indiegogo is one of the first and largest global fundraising sites that help individuals, businesses, and nonprofits raise money online. It allows people to activate their global community with their user-friendly dashboard. The site’s market is open to anyone who has an idea and wants to raise funds to financially start them to reach their goal. It has been estimated that over nine million people from all around the world visit this site on a monthly basis. With this type of traffic and strong reputation, you are looking at an incredible untouched resource to get you started on your journey.
DonorsChoose is a nonprofit organization that allows individuals to directly donate to the education sector. This is specifically designed to help teachers, educators, and administration raise funding for various classroom projects. This site is one of the first civic crowdfunding platforms of its kind. It gives many people the opportunity to truly create an impact especially on the future leaders for tomorrow.
Similar to Kickstarter and Indiegogo, Rockethub is another large online crowdfunding platform. It users usually include a variety of people from music, business, science, arts, fashion, startups, and nonprofits. Rockethub operates in a way to help raise awareness for your project and future endeavors.