The Good, the Bad & Excellent of CrowdFunding

CFB News Desk, Crowd funding: Can this overcome the funding challenge? August 18, 2014 By, IKENNA OBI, The major challenge for every average entrepreneur is securing funds to finance a business idea. The banks are reluctant to give loans; possibly because they are afraid the loans may become homing pigeons. Family, relatives, friends think the ideas are not worth their money. And you don’t have enough to even set the business idea in motion. Frustration sets in and the idea dies. This experience is common and proves that absence of funding is largely responsible for the dearth of entrepreneurs. goodbadreviews In recent years, crowd funding seems to be gaining traction as a credible solution to the challenge of funding for start-up ideas. What is it all about? Are there any demerits or challenges with this funding mechanism? Start-Up Digest sought for clarifications. Read and be informed Crowd funding is asking a crowd of people to donate a defined amount of money for a specific cause or project in exchange for various rewards. There are three general categories crowd funding can fall under: Equity, Donation, and Debt. Equity-based crowd funding is asking a crowd to donate to your business or project in exchange for equity. Donation-based crowd funding is asking a crowd to donate to your project in exchange for tangible, non-monetary rewards such as an ecard, t-shirt, pre-released CD, or the finished product. Debt-based crowdfunding is asking a crowd to donate to your business or business project in exchange for financial return and/or interest at a future date. The Good •Crowdfunding is useful for a variety of opportunities, whether fundraising for disaster-relief, creative projects, creating a salable product, or creating a start-up. •Crowdfunding platforms allow you to market your project, generate interest, and receive funds. •Crowdfunding backers can provide useful feedback about your project. •Once you get a solid base of support, there is no limit to the amount of projects you can fund. The Bad •Crowdfunding your project exposes your ideas to potential copycats. •Crowdfunding platforms may limit the amount of funds you can receive. •Crowdfunding regulations and taxation can be difficult to work with. The Excellent •Crowdfunding is not limited to certain kind of project, there is no discrimination! Only great ideas! •Crowdfunding can be fast, efficient, and effective if done right. •There can be little risk involved compared to other business ventures. •The more creativity and fun you have, the more likely you’ll get funded.

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Redding Record SearchlightCrowdfunding isn't about buying but about donatingRedding Record SearchlightImagine you're an innovator with a big idea but not a lot of cash to bring the idea to fruition. You spend some of your own money up front to design a cool demo, and then yo [...]

Can-Do Playground featured in national park crowdfunding campaignHockessin Community newsThe Can-Do Playground at Alapocas Run State Park was selected to be featured on the national crowdfunding site Fund Your Park by the National Recreation and Park Association. The crowdfunding camp [...]

City A.M.Identifying the risks of crowdfundingCity A.M.With the market recently hitting £10bn, crowdfunding is no longer a small fish in the big finance pond. But as the sector expands, it's also becoming more complex. Some say crowdfunding operates on the fringes of mainstream f [...]

NDTVCrowdfunding Restores Ponds In Drought-Hit Tamil NaduNDTVCrowdfunding is growing in popularity in the country as a means to finance medical emergencies, help underpriviliged people and assist during disasters. Environmental causes - from planting trees to cleaning beaches - is a r [...]

TechCrunchSnopes seeks crowdfunding in ownership battleTechCrunchHow many times have you heard some urban legend, chain letter or misleading bit of news repeated and immediately found a thorough, fact-based debunking on Snopes? Like every damn day for the last 20 years or so, right? S [...]

Sactown MagazineWe the PeopleSactown MagazineI believe people instinctively want to improve their neighborhoods, and crowdfunding sites are giving them a low-risk, low-cost and high-impact way of doing just that. One popular category of civic campaigns is for parklets—those bite-sized [...]

Vermont Public RadioAs Regulations Change, Interest In Equity Crowdfunding GrowsVermont Public RadioWhat's often called 'equity crowdfunding' is giving businesses, especially start-ups, a way to raise money when they can't access capital from traditional sources, l [...]

MashableStudy shows women are way better than men at crowdfundingMashableMale investors often don't fully understand the value of ideas women entrepreneurs pitch them. They throw capital at food delivery service after food delivery service, but ignore ideas that cater to groups t [...]

YouCaring Selected as Preferred Crowdfunding Platform for Major League BaseballMarkets InsiderSAN FRANCISCO, July 26, 2017 /PRNewswire/ -- YouCaring today announced that it has entered into a partnership with Major League Baseball (MLB) to bring crowdfunding to the Big Leagues. Throug [...]

ForbesWhy Crowdfunding Is Still Booming, Especially For Chinese Tech CompaniesForbesBased on recent media reports, it looks like crowdfunding is now in the "disillusionment" phase of the famous Gartner hype cycle, after peaking a few years back. I will argue that crowdfundin [...]

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