What is crowdfunding and how does it works?
Crowdfunding is a means for an individual or a company (applicants for funding) to collect small amounts of money from several sources (contributors) including social medias.
Funds can be raised to hold a cultural event, produce a movie or an album, support natural disaster victims, finance the development of a technological project, finance a company, etc. There is no financial institution or intermediary between the applicants and contributors, the solicitation is direct.
This funding model isn’t new but it is booming with popularity within the Internet and social medias. Funding applicants can inexpensively reach a large number of contributors on a larger scale. Moreover, many crowdfunding platforms can be found on the Internet that are aimed at facilitating communication between applicants and contributors.
Why do people contribute to Crowdfunding?
More often than not and whether it is applicants or contributors, people involved in the Crowdfunding process share a passion or common interest such as the arts, social and or charitable causes, etc.
What can they expect in return?
The contribution may be in the form of a donation or in exchange for a non-monetary compensation such as a copy of the album produced, tickets to attend a financed show or an invitation to the launch of a movie produced.
Main Crowdfunding Platforms and Their Specific Features
The FNQLEDC has created a list of the main crowdfunding platforms and their specific features. To consult the list, click on the picture.