Crowdfunding – The practice of collectively funding a project or venture!!
Crowd funding describes the cumulative symbiosis, diligence and trust between people who network and pool their money and other monetary-resources together, through the internet, to support unique ideas and niche startups initiated by other people or organizations. Crowd funding can be established under any different approaches with any unique ideas, from disaster relief to citizen journalism to artists seeking support from fans, to political campaigns, to funding a startup company, movie or small business or creating free software.
Emergence of the Crowdfunding market-place
The Ugly effects of the current economic crisis have undoubtedly generated a feeling of distrust towards the banking industry. And therefore the themes like “Crowdfunding” (and Crowdsourcing) will definitely help to rebuild the often damaged relationship between Money seekers and investors and thereby creating a trustworthy groups.
World trade organization have admitted that the world trade have expanded in 2011 by 5.0%, a sharp deceleration from the 2010 rebound of 13.8%, and growth will slow further still to 3.7% in 2012, WTO economists project. They attributed the slowdown to the global economy losing momentum due to a number of shocks, including the European sovereign debt crisis.
All these crisis meant for an establishment of another scalable platform under different vertical that could pour the water for current economic needs, well we always have seen situations where a group performance wins over the individual performance, and hence we have seen many Community Business Models opting to raise funds for their capital from the non-accredited investors through a community based networks, well this has become a huge success and has opened up markets for many new Startups.
The year 1997 has been marked has the first ever efforts taken towards instating the Crowdfunding strategy though ignorant the concept has had a long time focus into it, here the fans underwrote an entire U.S. tour for the British rock group Marillion, raising $60,000 in donations by means of a fan-based internet campaign. The idea was conceived and managed by fans without any involvement by the band, although Marillion has since used this method with great success as a way to fund the recording and marketing of its albums, and today we have numerous startup companies under Crowdfunding concept which have been successful in their ventures.
Crowdfunding encourages Economical-growth
Crowdfunding creates a “LETS MOVE ON” situations, where people instead of just waiting for their niche jobs can come along with their niche ideas for establishing a unique start-up and find success by getting it funded from the public, well the “WORLD IS SO SMALL”, when you start looking at CrowdFunding, this can be evident when we can take a look at the below fact findings :
A quick look at current census data tells you how quickly small businesses are popping up(In 2010, there were 33 percent more establishments than employer businesses in US. Back in 1977, there were only 22 percent more.). According to the U.S. Census Bureau, firms and establishments with 4-5 employees greatly outnumber any other. Small businesses are driving our economy’s growth. Crowdfunding encourages this growth by allowing established business owners to expand and gives small businesses the chance to acquire funding to launch their business. With the economy finally exiting recession there will be more investor capital looking for a home. Crowdfunding makes small businesses an investment option.
Global support and encouragement for the concept
With the ”The JOBS Act” changing the game for crowdfunding. It makes it legal for crowdfunding sites to give actual equity to investors – not just thank-you gifts such as T-shirts and coffee mugs – and it’s expected to draw a vast amount of capital to crowdfunding. Some are predicting an influx of as much as $300 billion, 10 times the amount now deployed in the venture sector. Today, campaigns that raise money for medical funds make up about 17 percent of all user activity. Campaigns for school tuition, which make up 11 percent of activity, and those for volunteer trips, at 10 percent, round out the top three use cases.
- In Cape Town, South Africa, an award has been established for the development of crowdfunding technology that can help African entrepreneurs.
- A new social media platform called IDEAME is dedicated to collecting the best crowdfunding ideas throughout Latin America.
Owing to these supports in terms of compound annual growth rate (CAGR), the crowdfunding industry is being growing at a rate of 63 percent in terms of the total amount of funds raised.
Further findings :
- Equity-based platforms grew at 114 percent CAGR, with the largest growth primarily taking place in Europe. Perhaps unsurprisingly, the equity-based category also raised the largest sums per campaign, as over 80 percent raised over $25K+.
- The second category, donation-based platforms, defined by philanthropic or sponsorship incentives, raised the most funds at $676 million but were the slowest growing of the categories at 43 percent CAGR.
- Lending-based platforms, or person-to-person, person-to-business, and social models were the second largest category, raising $552 million and growing at 78 percent. Lastly, reward-based platforms, or non-monetary rewards portals, grew by a staggering 524 percent CAGR.
SF platform – An Agriya’s answer to the cause
Agriya as always has latched on to this opportunity to create an Unique product under the crowdsourcing strategy which is of both a cumulative and a symbiosis patterns that can serve people needs by raising funds online, well the effort has paved off by the way of SF platform which can cater to any of the crowdfunding verticals and can serve any fund-raising purposes,
SF Platform is one of the best fundraising platforms with the strategical “crowd funding” and a “Communal Business Model” concepts, SF Platform facilitates accumulating the funds from the general public(including the donates from non-accredited investors), a model which wins over many other existing/bygone traditional avenues of investment, It is a exclusive contribution website with inter-participation features that makes it incredibly easy for people to raise money online for the things that matter to them most.
~ SF platform can be used to focus on helping people raise money for their personal needs.
~ SF platform can adopt to different demographics and a numerous different use cases. for example it can be used as a place for raising funds to suggest new & independent films or albums, as well as a place to fund their hardware ambitions, SF platform continues to operate mostly as a place where users can ask friends and family to help fund major life events.
~ SF Platform’s featuring advantage here is that even the non-accredited investors can come along and invest for the projects/ideas. Yes, now even your mom can invest in here.
~ At SF platform Users can create their online donation website @ the rate of knots and share it with friends & family by connecting to Facebook, Twitter, and email and receive the contributions.
~ SF Platform does not give up any little control of the product – each individual contributor is giving too little to merit a vote on the project. So there you can reserve the ownership and stakes, and continue to maintain them risk-free.
~ SF Platform’s Crowd funding base takes advantage of the social nature of the crowd and not only allows you to get money from, but also as your crowd spreads the word about your needs, it will essentially also be spreading the word about your business. It is important when starting a crowd-funding campaign, that you are clear about what your small business stands for and has to offer. Many people will then be willing to contribute because they are interested in your products or because it fills a particular need. This way you can also measure how responsive your future clientele will be to your business and get an idea of initial demand.
~ SF platform enables you to run Equity-based platforms, donation-based platforms and also Lending-based platforms. It is designed to fit any of these platforms. And this cited as an main advantage since it creates room for a range of approaches that can be taken to raising funding.
~ SF Platform is going to boost-up the Freelancing(work from home) conceptions , and help people to stand on their own themes for leading life, SF platform is surely going to spruce-up the situations for the Crowd-fund Saga to help many amateur start-ups.
~ SF Platform can be used for any variety of purposes, from disaster relief to citizen journalism to artists seeking support from fans, to political campaigns.
~ SF platform supports app campaigns(Which is not available on any of the existing CrowdFunding-websites), now you can also sell the rights to certain apps or even sell shares in a company. And also you can find freelancers who might be interested in working with you on your idea.
~ And SF Platform will not just let you to raise funds for any Start-up but also help you to build communities and create a long term understanding between the investors and the start-up groups. So for instance, users can solicit funds when they’re planning a Charity-help owings, or if they’ve gotten into a car accident and don’t have insurance. Maybe they lost their job and are in need of some rent money. Or maybe they’re raising money for their local youth sports league. You know, that sort of thing.
SF platform which is both a Crowdfunding and premeditated community which has a lot to offer for everyone. Look for crowdfunding examples in premeditated communities, Many people who live in community also prefer alternatives to mainstream business and may have personal projects in progress. Look for people interested in community among crowdfunding projects. bestowers who enjoy supporting their creative friends, or creators who love interacting with an audience, may also like the idea of community as part of everyday life. here you can also consider creating communities for any good cause by just letting your bestowers/contributors know about what you are doing, it’s just like a “social-bank” which lends you money for a very meak returns or sometimes “No returns”!!!!!!!!!!!!