How To Raise Money With Crowd Funding

[moonchild]

Crowd funding is the act of raising funds through different individuals, this could be for your business or for a community project, or to help for a cause, crowd funding can be done for personal and business projects, we are going to look at how one can use crowd funding to raise money and what it entails.

There are different types of crowd funding like equity based crowd funding in which you'll offer donors an equity out of your business based on the amount they donated, the second one is reward based, this is a voluntary crowd funding that is, any amount given in this type of funding is free and mostly its towards a cause like surgery, school fees et all.

Equity based crowd funding can be an alternative to angel investment and can help your business or company to scale because involving in crowd funding can help with branding especially if it's shared on social networks.

There are different platforms that'll help you to collect proceeds of crowd funding, some prominent ones are GoFundMe.com, IndiesGo.com etc, though they charge a negligible amount as commission.

Do you think crowd funding is a good way to raise money? If no, what are your thoughts?

 

[Iceysammas]

It's also a good way to raise funding