How Does Crowdfunding is Fund Dreams for Investors

How Does Crowdfunding is Fund Dreams for Investors - Have you heard of crudefunding? What kind of funding is this and how is it different from general financing? If you are using social media you will have ever heard of this word about whether or not it or not. This is a very innovative idea for any startup or company or for any work in which money is required. With the help of more internet this innovative idea is reaching more and more people with the help of the internet so that more people are now joining it.

How Does Crowdfunding is Fund Dreams for Investors

How Does Crowdfunding is Fund Dreams for Investors

There is no complete knowledge about many people, so today I thought why you should inform people about the crossfunding and how useful it is so that you have to ask anyone about it. So let's start without delay and know what happens with the cross-funding.


What is crowdfunding?

Crowdfunding is used to refer to the practice where money is extracted from a group of people, people who invest their money here know it well and why they invest their money. Generally it is only for a particular reason.

This is one of the ways to increase money, where internet, social networking such as Facebook, Twitter or any other crowdfunding-dedicated websites is used completely. These small small businesses and startups help improve and more and more people will learn through social media, which will increase their investment base, and fund the prospects.

Crowdfunding is not a new concept because it was already indigenous in our country. For example, donations which we choose from among the people around us in the event of festival. It makes it easier for people to do any social work. It also uses it in social causes and music festivals of films. It has been surrendered in peer-to-peer models such as coworkers.

The main components of Crowdfunding

If we talk about the modern crowdfunding model then there are three main components in it. Where is the work of Project Initiator, Supporters, Platform Project Initiator, which propose that it means that people tell people about their project. The second is a supporter, which can be either a person or group whose main task is to understand and support the idea correctly and the third and the last part are the right platform, which will launch the idea in front of right thoughts, Meet that meeting to meet that idea.

Types of Crowdfunding

If we talk about various fundfunding, then there are many types of fundraising such as debt based, equity-based, reason-based, reward-based, software value tokens, charity based, lawsuits etc.

1.Equity Based Crowdfunding

In this type of crowd, investors invest large amounts of money in most of the time so that they can get large piece equity in startup. Most often it is used to increase the usage of equity-based crowdfunding companies. This kind of crowd is considered illegal in India. SEBI (Securities and Exchange Board of India) is a stakeholder who can make guidelines for legalizing it.

2. Award-based Crowdfunding

This kind of crowdfunding gets you a lot. As you can understand by name, the investor gets a tangible product in exchange for his investment. For example, if you are a startup of digital watches, then you have to give your investors an end to digital clocks, this is completely legal in India.

3. Donation-based Crowdfunding

In this type of crossfunding donors can donate according to their own great cause. These donations may be of a certain amount, donors do not get any reward based on the award. It is completely legal in India. Here donors donate by heart for the good of our society. For example Ratan Tata, who makes a lot of donations from time to time

4. Credit Based Crowdfunding

In this kind of crowd, you invest in the company's security (also called debt instrument), where your objective is to pay your company according to the loan and in return the company will refund the specified interest rate. There are two types of debt instruments with secure and unsecured loan equipment. Interest rates are usually linked to the level of risk associated with any particular startup or unit, it is legal in India.

5. Public-Private Partnership

(PPP) based on equity-based model, they are mainly used in the crowd of India.

Crudefunding examples in India

On the way to India you will find many examples of crossfunding but here are some examples of people telling you: - 
  • A crowd was launched to train the new generation of artists properly, whose original purpose was to preserve the art form created by Kudiyattam.
  • Paramangal badminton star Mark Dharma, who did not have the money to participate in Para Badminton, so the crowd was started so that he spent his entire travel time and established a big record in the Para Badminton International 2017 held in Thailand!
  • Famous Crowdfunding Forum
  • There are many crowdfunding platforms available, but only a few of them have made their own free space. Here you are going to tell people about the same famous Crowdfunding Forum.

Famous Crowdfunding Platforms:

Wishbari, Milap, Miracle Foundation, Rangedi Crodcube and Cedar which are performing very well.

  • The main work of the WishBerry fund is to work for creative artists.
  • The same MILAP works primarily for charity.
  • Miracle Foundation works primarily for children.
  • Rangade is an internet-based peer-to-peer micro-landing platform that provides low cost loans to rural entrepreneurs across India, so that they can do their job in a good and smooth manner.
  • All CrowdCube and Seedrs are such internet platforms that help small companies to issue shares. These shares provide to registered users who have invested some good returns in those companies.
  • Several such platforms have also been raised which are designed to give more funding in scientific projects, such as the Crowdfund is a use-com and another is open source science project.

Benefits of Crowdfunding

  • The way Crowdfunding has many advantages but I have tried to present something important to you.
  • Crowdfunding, due to any formal banking system, this process is not very dangerous.
  • This is a very efficient system and it takes very little time.
  • This increases the productivity of innovation and entrepreneurship to a great extent.
  • If this help meets the right guidance, small enterprises can grow well.
  • This makes business policy very easy.
  • There are many such applications, such as blogging, journalism, music, independent films, and startup companies, many work to do further work in the form of creative work.
  • This is a very good way to return something to society.
  • These manufacturers allow low cost capital gains.
  • Crowdfunding soon makes it easier to get more publicity, better customer base and good employees.
  • It provides a good platform for donating and investing to the right people to reach the right thing.
  • They do not believe in caste and gender discrimination and see all the people with equal vision that can cause equality in society.
  • It earns inflation, these platforms reduce search and transaction costs so that they can participate in the market by better crying.
  • With the help of investors, the value of companies increases and in addition they add value to the companies.

Crowdfunding's Demitutes

As we all know that there are two aspects of everything, such as the two aspects of the crossfunding are one of its benefits, which we already know that now it is understand what its main drawbacks are.

  • This is a little risky for new small scale investors and entrepreneurs and for which they have often failed in this new venture.
  • At the right time there is a danger of overthrowing prestige. If it does not reach the goals and goals at the right time, then it is not successful in generating interest, which can also cause public failure.
  • Intellectual property (IP) security can also be classified according to the creators who are engaged in the crowd because they are to appear before the public in front of their final product, which is very high risk for their copy.
  • There is also a risk in it that if the network of supporters is repeatedly contacted then the campaign can not get the right support which can later become a big failure.
  • Because it does not come under any regulatory framework, it is always afraid of misuse of public misuse.
  • Since there is no formal banking system, there are more possibilities here that there is more fraud and money laundering.
  • There is also a risk of credit eligibility and enforcement eligibility.
  • With this there is always a lack of expertise because the newbie ration is less.
  • As we know that the startup area in India is still immature, therefore there are chances of failure here.

How To Make Crudefunding Success

  • If the crossfunding is completely successful then some things should be seen in particular.
  • In this way, full transparency and responsibility for reducing fraud and illegal activities.
  • It is mandatory to have one.
  • Social media should be used to spread awareness.
  • It should always be noted that the money reached the right people and at least people came into contact.
  • All details should be properly documented so that accumulated money can not be misused.
  • There should be a law in India to support crudefunding and entrepreneurship.
  • People should change the view of the crossfunding.
  • The belief about private institutions should change that they are not fully profitable.

If crudefunding is to be successful in India, then a pro-business environment should be established.

I sincerely hope that I have a crowd of people? Full details about this are given and hopefully you will understand what the crowd funding is. I am convinced of all the readers that you also share this information with your neighbors, relatives, friends, so that we can stay informed of our interaction and get all the benefits from it. I want people's support from you so that I can bring you even more information.

I always have to try that if you make any doubts of any kind then I always help my readers or readers on every side, then you can ask me uncomfortable. I will definitely try to solve those doubts. What is Crowdfunding on this article How do you feel like writing a comment so that we can also get a chance to learn something from your thoughts and improve something. To show your happiness and excitement towards my post, please share this post on social networks like Facebook, Google+ and Twitter.

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