Developing internet and web sources plays part in funding too. There is a way to reach a large network of potential contributors online and use their resources and this is called Crowdfunding.

In this way, start-ups can offer their new idea, new product or service to investors online and an investor can find new entrepreneurs very easily.

There is no limit on the amount of money that can be invested and this is a very attractive way also. When many people can fund a small amount of money, it turns into enough capital to support some really nice idea. This source can be called microfinancing – it connects individuals with money ( and not necessarily a big amount of money) and individuals or companies with ideas. Crowdfunding makes easy access to networks of people through social media and crowdfunding websites in order to bring investors and entrepreneurs together.

  1. Besides business, such a platform is very well used for charitable causes and has a really high social impact on today’s society.  It is a young and quickly growing market and it is transforming how people behave with their money.Three Types of Crowdfunding Models
    Personal Fundraising Individuals raising funds for a neighbor, friend, family, or organization. They are quick to set up and allow the person to start collecting donations.


    The most famous webpages are GoFundMe and HoneyFund.

    Many of these platforms allow individuals to raise funds for a nonprofit.

    Business or Creative Project Crowdfunding These platforms offer a more professional feel as well as many marketing opportunities to expand the company’s reach.

     The most famous project-based fundraising sites are Indiegogo or Kickstarter.

    ·         Indiegogo specializes in technology and hardware product launches. The benefit of Indiegogo is its team of marketing strategists who help expand product or idea reach during the campaign.

     ·         Kickstarter is geared toward creative projects. Mostly, this webpage could be a good option for musicians, artists or filmmakers.

    Nonprofit Fundraising For charitable organizations, online fundraising is becoming more common for nonprofits. There are also many web pages about the social impact on the community.

    The Benefits of Crowdfunding

    Crowdfunding is the best way of searching for investors and audiences. It is the most flexible method, so there are the main benefits of this platform.  

    • Reach – By using a crowdfunding platform like Fundable, a person has access to thousands of accredited investors who can see, interact with, and share fundraising campaigns.
    • PR & Marketing – From launch to close, individuals can share and promote their campaign through social media, email newsletters, and other online marketing tactics. With such help of the audience, it is much easier and effective.
    • Validation of Concept – Presenting concept or business to the masses affords an excellent opportunity to validate offering. As potential investors begin to express interest and ask questions, a person can quickly see if there is something missing and improve it; that would make them more likely to buy-in.
    • Efficiency – One of the best things about online crowdfunding is its ability to centralize fundraising efforts.



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