HOW CROWDFUNDING WORKS AND WHAT ALL IS THERE TO IT
Crowdfunding means raising money from different sources where each contributor invests a little amount to help a greater goal. A number of ventures have been made successful with this very process and it is gaining popularity every day. It marks a great opportunity for entrepreneurs to procure a lot of funds for their business from people who are simply willing to invest. And since, the number of sources in case of crowdfunding is a huge, it hardly matters if the individual contributions are less.
There are regulations related to crowdfunding which guide how crowdfunding works and are there to protect inexperienced or non-wealthy investors from putting too much of their savings at risk. This is to safeguard them from losing too much money if the venture does not pan out well. There is a reward based system incorporated in the crowdfunding process by virtue of which investors can participate in the new product launch or can get a gift/reward for their contribution. This aspect of the crowdfunding strategy came into existence to cater to the happiness of the investors which is often important.
A number of platforms are used for fundraising using crowdfunding strategies and these include – internet mediated registries, mail-order subscriptions and benefit events. Among these the one platform gaining the most popularity and trust is the very first one. The world is on the web and so are these fundraisers. So with surge in demand of the internet being the platform for these types of fundraising, a number of crowdfunding websites have come to being. Among these, the one that has been tagged as the Asia’s most-visited and trusted crowdfunding platform is Ketto.org. It also has the world’s largest funding community. It is rather too easy to start a fundraiser on Ketto. It is free and also there is no penalty if one is unable to reach the goal amount.