You can help India win a gold medal at the upcoming Commonwealth Games, you can help a woman fight breast cancer, you can even help build a hospital – all with as little as Rs 100. That is the power of crowdfunding. It empowers the masses to be a part of change, of a revolution.
Crowdfunding allows a large number of people to fund campaigns, initiatives and causes, usually via the internet. In an effort to mobilise the active online community of people to donate, crowdfunding engines like ours are created to make giving to charity both cool and easy.
Read the Financial Times article to understand how you can benefit from crowdfunding, how it works, the returns, rewards and much more.
What is in it for the crowdfunding platforms?
They charge a fee, which tends to be a percentage of the amount raised. Seeders, for instance, has a fee of 7.5 per cent of the total. Kickstarter will apply a 5 per cent fee, plus payment processing fees of 3 to 5 per cent, for successful campaigns. It charges nothing if the target is not hit.
How do you get involved as an investor/lender?
Investors can search the websites for projects using keywords. They then click to make an investment, much as people buying something online after completing a sign in and giving their bank details. Money is taken when the pledges reach the target set by those seeking funding.
How quick can companies raise money?
Crowdfunding exercises are usually run over a period of weeks, but campaigns that capture people’s attention can hit their target much more quickly. Kano, the UK-based start-up behind a cut-price computer that is designed to be as simple to build as Lego, raised more than $140,000 in crowdfunding in a matter of hours for its $99 kits.
Read the article in its entirety here.