Raising Money with Crowdfunding
In This Chapter
Understanding how crowdfunding works
Thinking about budget, benefits, and deadlines
Getting the crowd onside
Using equity crowdfunding to boost your business
Unlike other forms of crowdsourcing, crowdfunding is not about work. Crowdfunding is about raising money in small donations from a large crowd of people. You can quickly identify two fundamentally different kinds of crowdfunding: crowdfunding for charity and crowdfunding for commercial companies.
The easiest type of crowdfunding to understand is charitable crowdfunding, where you go to a crowd and ask each member for a donation to a cause. That cause can be an organised charity, a personal need (such as a medical expense or home repairs after a natural disaster), a community activity or an artistic endeavour.
Some crowdfunding sites identify another kind of charitable crowdfunding, usually called fund-your-dreams crowdfunding, where you try to raise money to do something that you’ve always wanted to do, such as travel to Rwanda to see the mountain gorillas, learn to ...