What is Crowdfunding?

CTAH

Well-Known Member
The term Crowdfunding comes from the combination of two words: Crowd & funding. Now you can explain it for yourself what does it mean?

Crowdfunding is a method where you asking people to invest some amounts of money in your project. Till now, we were familiar with the practice where a project was supported by few investors with huge amount of money. Crowdfunding overturns this idea into new one, where Internet stands as a main reason to exist. Here you can have thousands, even million investors, ready to put their money into an idea.

How does it work?

Well, the man with the idea opens an account to such a site, where he describes and publishes his project in order to be visible for many others. The channels that are used here could be many and different, depending on the available resources. The main goal here is to get as mush as possible money for the realization of the idea. Of course, the owner of the idea could put limits on the amount he want to collect. But as much he gets, the best results he can achieve with the money.

There is three different types of Crowdfunding: Donation / Loan / Shares

Crowdfund / Donation

People invest money in the project, because they believe in the cause. Like the idea or just want to be part of t. The returns are not material. There could be given away gifts (often given as a thanks for the Crowdfunding), like event tickets, albums, other presents and etc. Basically, donors have social or personal reason to invest the money into the project, and do not expect anything in return. The real benefit here is the feeling of doing something good and helping out the project.

Crowdfund / Loan

The investors return their money with a dividends. It is also know as P2P (partner to partner) lending. Investing money bypassing banks and other financial organization. The returns are financial.

Crowdfund / Shares

We all know what is all about here. People invest some money in the project and they get a share of it. As simple as that. The amount of money refers to the % of the share. Of course they owner of the idea says what are the terms and conditions here. Like normal shares, the price goes up when the idea is successful and everything goes just find, and the price drops if the idea is not going so well.

Different Crowdfund sites could have different goals and methods, but the idea is simple - just publishing your project to a group of users or/and potential investors, that will invest in your idea. They need to be interested in what you offer.

You can try Crowdfund for free. You will be charged only if your project collect the amount you need or reaches the full amount of money. You will lose nothing. You will see is your idea interesting for people and will you make the buzz.
 
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Crowdfunding StartUPs | Crowdfunding for Nonprofits

The idea is great and definitely need something like this. Especially the newbies with no money, but with great ideas. Everyone who wants to invest some money (if we use selling shares method), could have business for a few dollars, which will have some value in future. Of course, this should be well-done with the documentations and etc.

So, I want to give some examples with site that are "middle man" between the idea and the money:


Kickstarter


One of the biggest and hottest crowdfunding sites on the net. I am not so familiar with the this, as you can see, but will try to give short review here. As I red, there is 61 000 started projects, all budgeted for $220 million. Amazing, isn't it? Every single moment a new idea s published there in order to get collect money and see world.

Indiegogo


As you can see if from the name, the main goal of the site is to collect money and make it go go go. ;) The site is similar to kickstarter.com, so it won't take you much time to start using as you do with the kickstarter.com.

And there are more similar sites like the mentioned ones::

http://www.rockethub.com/

http://gofundme.com/

http://www.razoo.com/

http://www.crowdrise.com/

http://www.pledgemusic.com/
 
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I know that one of the biggest environmental organization is financed by using this method. With small membership payments or donations, but a lot of people were involved. In the end they collect tens of millions.
 
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The idea is great and I think will be welcome from most of us here. A lot of creative people here have ideas, but no budgets. How do you find it as an idea? I am interested in what others will say about it. According to the stats here, we are not small community. So, it will not be a problem to most of us to invest few dollars in a idea we like and find it profitable. Venture investing. Of course, there is a risk, but high risk always gives huge returns. Right?

I find the idea interesting. How about you?
 
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I am also into it. I have had experience with kickstarter and can say that everything I add new project, there is not point in doing it, because they are all into projects in USA. I really need such a place, here locally, just to see are people ready to invest in my ideas. Does my projects sound great and is there any point of keep doing it. :)

If you decide to start such a site, count me as well. :)
 
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How many crowdfunding websites are there

@CTAH, did you format the text, or the forum system?
 
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Re: Crowdfunding Websites for Nonprofits

Me, me. The forum is just find. My energy has stopped 3 times while I was writing it. In the end I did copy-paste the text from the txt file. My apologises! :)


Do you want to invest in some generator? :)
The idea is good...! And I think that there is no such think in Bulgaria?
 
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Do you want to invest in some generator? :)
The idea is good...! And I think that there is no such think in Bulgaria?

A similar site could be http://eleven.bg/ - but am not sure is their business model same as the given here. As far as I know they want % of the investment (t my memory - 8-10%), but the whole amount of money is given only by them.

In this thread we are talking about a great number of "angels", that invest in the project and get their shares of it. The amount they invest, the shares they get. 1=1, for example. The idea is really nice and the reason why could be well-promoted here, is that a lot of ideas have been publishing here, every single day. I believe that a small part of them could be the one-million idea and could have future. And such a money collecting method could tell us which one or is it interesting. As people say, the answer will be always NO, if you not asking at all. :)

How does you see it? I think, that if someone has avaliable money and he is looking for an investment, this will do the job here. You know, that you are losing if your money does not work for you, just stay in the safe and collecting dust. Of course, as an investor everyone should make his own research and analyse the situation.
 
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So, everybody says:

"REALLY NICE OFFER, INDEED" .... Ok, does anyone from you really ready to start such a site?
I am not familiar with writing, I am not great designer, but when it comes to develop sites, I am into. It will be great to develop it someone who knows how to do it in order to be beautiful. I am ready to do my best, greetings and will wait for your opinions about the idea. :)
 
Последно редактирано от модератор:
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A similar site could be http://eleven.bg/ - but am not sure is their business model same as the given here. As far as I know they want % of the investment (t my memory - 8-10%), but the whole amount of money is given only by them.

In this thread we are talking about a great number of "angels", that invest in the project and get their shares of it. The amount they invest, the shares they get. 1=1, for example. The idea is really nice and the reason why could be well-promoted here, is that a lot of ideas have been publishing here, every single day. I believe that a small part of them could be the one-million idea and could have future. And such a money collecting method could tell us which one or is it interesting. As people say, the answer will be always NO, if you not asking at all. :)

How does you see it? I think, that if someone has avaliable money and he is looking for an investment, this will do the job here. You know, that you are losing if your money does not work for you, just stay in the safe and collecting dust. Of course, as an investor everyone should make his own research and analyse the situation.

eleven.bg are so called seed accelerators sites or startups accelerators - see it here. They do not offer crowdfunding method. Crowdfunding is about 80% donations, globally. If you want to invest money and get shares, here in Bulgarian, BBAN (or something like that) is your organization.
 
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От: What is Crowdfunding?

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Very Good Example

http://www.indiegogo.com/projects/white-elephant--2
 

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