Internal Reconstruction Corporate accounting by bhumika Garg
Crowdfunding
1. CROWDFUNDING
Funding a project or venture by raising
money from a large number of people who each contribute relatively small
amounts ,typically via internet.
3. INTRODUCTION
Practical ,money making ,job creating ideas
Need money for project
1st option go for banks (old method)
Bank consider start-ups as risky –reject loan
Using internet and cloud computing access potential
investors through crowd funding websites (new
method)
4. Crowdfunding process
Choose a platform that best suits you
Give details about the project accept or reject
Small network of enthusiastic friends and family
Present a serious business plan and why money will
take your enterprise to next level
Include a video pitch and keep it short and concise
Be prepared to essentially live online ,active on social
media sites ,until the crowdfunding campaign is
complete.
6. Features of websites
1.kickstarter
- most popular(raised $220M from 61000projects)
- accepts only creative projects
- but not accept charity or scholarships
- Investor get the reward only if the project is successful.
- charge 5% fee
-amazon payment 3% extra
- drawback –project creator should be us resident
7. 2.Indiegogo
- same as Kickstarter
- backer get the reward known as “perks”
- flexible funding plan in which you receive fund if project
fail to reach funding goal.
- fee 4 % from fund raised
- extra 3 % credit card processing
- $25 for non us campaigns
8. 3.Rocket Hub
-use most for creatives
-you can track your project progress and status
-launchpad is a special feature offers members to work with
top notch brands ,companies ,and marketers to raise public
interest and seek more potential opportunities
- fee 4 % successful project
- fee 8 % for project ended without reaching goal
- extra 4 % credit card processing fee
9. 4.GoFundMe
-for self (or) for a cause
-EX: personal travel, medication fee
-5 % charge fee
-use “we pay” and they charge 2.9 % to 3.5%
5.Razoo
- focus heavily on causes than profitable projects
- divide fundraisers into 4 types non
profitable , individuals, corporations, foundations
- technological advantage
- fee 2.9% of the total fund
11. 1.Reward based crowdfunding
In reward based crowdfunding ,backers contribute small
amounts (between $1 and $1000 but sometimes more) in
exchange for a reward.
Kickstarter and Indiegogo are most popular rewards based
crowdfunding platforms
2.Donation based crowdfunding
In donation based crowdfunding ,donors generally donate small
amounts of money.
No reward
For non profit (or)cause (ex: drilling a well ,building a school)
GoFundMe and crowdrise are most popular
12. 3.Equity based crowdfunding
Investors give large amount (at least $1000)
no reward but a equity in company itself
Most used to raise funds for growth of company
AngelList and Crowdfunder are two most popular platforms
4.Debt based crowdfunding
Not investors (or) donors but lenders
No reward (or) equity but expect back principal along with
interest
Amount is raised for home improvement (or) for a car etc
13. Applications
Agriculture (Agfunder ,Cropital , Barnraiser are platforms)
Philanthropy and civic projects
Real estate(PatchoFLand ,Reality Mogul are platforms)
Intellectual property exposure
Science ( experiments.com)
14. Benefits
Provides access to capital
It reduce the risk
It serves as marketing tool
It gives proof of concept
Introduce loyal customer
Easier than the traditional applications
It is free
