How To Choose A Crowdfunding Platform

Introduction

Crowdfunding is one of the most exciting and fastest-growing trends in the crowdfunding world. In a nutshell, Crowdfunding is the process by which you, the creator of a new project, get financial support in exchange for your idea or startup, medical emergencies, education, NGOs, and much more. Here’s everything you need to know about Crowdfunding – 

The way to raise money for your business is through the crowdfunding process. In this method, you are looking for enthusiastic entrepreneurs to invest in your project. As the crowdfunding organizer, you are the sole administrator of the campaign, and all of the proceeds will go towards the production and delivery of the product or service. As you can imagine, this adds up fast!

Crowdfunding plan of action

You should keep in mind that it is not easy to find the right people to back your project. Crowdfunding works best with creative, high-impact ideas that appeal to a broad audience. It is important that you have a clear plan for how you intend to use the funds collected during your crowdfunding campaign. Without this plan, you may find yourself spending the funds on things that aren’t directly related to your business. To avoid this problem, you need help from experts who can show you how to use Crowdfunding effectively.

A Trusted Crowdfunding Platform – O-Bless

There are plenty of Crowdfunding platforms, but one such reliable platform is O-Bless. Many people think they have the skills necessary to manage their projects successfully, but others are unsure. If you aren’t skilled with marketing or design, O-Bless can help you in many ways with its robust features. Remember that with the help of a crowdfunding platform, you can easily support social and noble causes with financial aid.

What is O-Bless, and how does O-Bless help or support?

Bless is the most trustworthy online crowdfunding platform that is developed by ONPASSIVE. O-Bless allows you to join either as a benefactor or a campaigner. Join as a campaigner to launch an effective fundraising campaign in simple steps. Share engaging content with compelling visuals. With O-Bless, you will be able to raise a significant amount of money quickly, as it aims to connect with the right people to support with a charitable donation. O-Bless is secure and easy to access. 

Campaign Promotion plays a vital role

As the organizer of the campaign, you will also need to determine fundraising campaign promotion strategies. Publicize your campaign fundraising on social media networks to reach over to worldwide audiences. Furthermore, expand your campaign reach to corporates, MNCs, private organizations via Email Marketing, as it is an effective way to gather funds required for the cause.

Types of Crowdfunding 

There are several types of Crowdfunding, each with its own unique set of features and characteristics. The below-mentioned crowdfunding models have different ways of collecting the money that is needed to complete the project, as well as ways of counting it when the project is completed. The types of crowdfunding models are – 

• Equity crowdfunding involves a third party offering investors a stake in the startup company or project. Equity crowdfunding works well for businesses that have been established and are well known. They can use the money raised through equity crowdfunding to buy enough shares of the business to make it possible for them to hire additional staff members and office workers or to purchase new software and hardware to further their business operations. The downside to this kind of fundraising model is that there’s usually no way for the company or project to raise money in the future for similar projects.

• Reward-based Crowdfunding involves an investor giving rewards, such as cash or promotional items, to the individual contributing to the business’s cause. Rewards can come in the form of gifts or tokens that can be traded, bartered, or given as a physical object. Rewards can also come in the form of discounts on purchases, t-shirts and other promotions that can be redeemed at point-of-sale. An important thing to keep in mind is that the amount of reward that an investor gives will depend on the amount of funds the business has raised. An investor may give five dollars to someone who has funded the campaign for five dollars.

• Crowdfunding for nonprofits is an innovative new method of fundraising for small businesses in emerging markets. Unlike traditional methods of Crowdfunding, which typically provide only long-term financing, nonprofits use this method to raise short-term funds. This method enables nonprofits to secure enough funding to meet their immediate needs before turning to larger funding sources. In many cases, nonprofits also use this model to raise money for projects over the long term that has long-term benefits but low impact on the bottom line, such as the purchase of staff training or the building of a children’s center.

l Peer-to-Peer crowdfunding

Peer-to-peer Crowdfunding is very much like borrowing money from a bank, except that you borrow from many people rather than one. The whole goal is to repay the money with interest.

l Donation-based Crowdfunding

Many people contribute small amounts in order to meet a bigger fundraising goal for a specific charitable project without receiving any financial or material reward.

l Profit-sharing / revenue-sharing

Companies can receive funding now in exchange for sharing in future profits and revenues. 

l Debt-securities crowdfunding

The investor buys debt security, such as a bond issued by the company.

Conclusion

Crowdfunding remains a popular alternative financing method for many entrepreneurial startups. Although there are risks involved in Crowdfunding for new businesses, the rewards can be high. With proper research and due diligence, entrepreneurs can find opportunities that present excellent business opportunities and use the Crowdfunding process as a tool to help them grow their businesses. Whether it’s through equity financing or a third-party funding source, helping to fund a new business should always be the goal of entrepreneurs.