CROWD POWER – Let the Community Fund Your Startup
Crowdfunding is a term describing individuals helping one another by directly contributing capital to projects run by individuals and organizations. For small businesses or startups, crowdfunding is a powerful tool for creating jobs and growth.
The evolution of crowdfunding
The idea of crowdfunding is not entirely new. It developed from the concept of pooling capital: Microfinance, Microlending, Peer Lending, Crowdfunding.
Details
Promising small business owners can use crowdfunding platforms to launch their next projects
Pros and Cons
- Advantages:
– This platform can be used as a marketing tool.
– Create a forum to receive product feedback.
– An inexpensive way to raise capital.
- Disadvantages:
– Often limited by the amount of capital that can be raised.
– Presenting a community project means the idea may be copied.
– Capital is generally not subject to securities regulations.
Popular platforms
Some popular websites include: MicroYentures, Pozible, Cofundo, KickStarter.com...
Effectiveness
- As of 04/2011, businesses had made commitments totaling $53 million, of which businesses had received $40 million in capital support, with more than 20,371 projects funded and implemented.
- Success Rate:
– 43% of projects succeeded.
– 52% of projects successfully secured funding commitments.
– 90% of projects obtained the capital needed to succeed.
– 21% of projects received no commitments of financial support.
Chương trình liên quan tại YUP Education: X-Startup – khóa học khởi nghiệp «Khởi Chánh Nghiệp» · The Journey – lộ trình phát triển doanh nhân
