What is Crowdfunding?
Crowdfunding is an alternative to traditional small-business financing that provides the means to transform a promising idea into profitable reality.
Rewards-based crowdfunding is the most popular type of crowdfunding. It’s is a financing option for start-ups and Creative ideas to bring them into reality.
What are rewards-based crowdfunding?
Rewards-based, or seed, crowdfunding is a type of small-business financing in which entrepreneurs solicit financial funding from individuals in return for a product or service or the dividend paid from the profits.
How does it work?
Business owners describe their project or business idea and fundraising goal on their website.
In return for funding, businesses provide rewards.
Who can contribute?
Anyone — family, friends, customers, business partners — can contribute to a rewards crowdfunding campaign. Individual funding’s are often small, so business owners need to persuade as many people as possible to pitch in. Often, the campaign is shared on social media with the hope that the business owner’s followers will, in turn, share the campaign with their networks.