01 Dec J.J. Watt Proved How Powerful Crowdfunding Can Be
Companies have been using crowdfunding platforms for around seven years now.
The crowdfunding platform GoFundMe launched on May 10th, 2010 and since then many other similar companies have popped up all over the internet.
A great example of how a crowdfunding campaign can explode and take off is by taking a look at the one that Houston Texans’ star J.J. Watt set up to help assist with Hurricane Harvey flood relief.
Soon after the Houston area was hit hard by Hurricane Harvey back in mid-August, Watt set up a crowdfunding campaign on the website YouCaring.com. At first his goal was to raise around $200,000. Before Watt knew it, he had raised over $37 million. If he didn’t set an expiration date for people to make donations, who knows how much money he would have raised.
Not only can crowdfunding campaigns help someone raise money for a good cause, they can also help a business raise money in an effort to get a product off the ground. It’s a great way to avoid having to use credit cards, ask for help from your family and friends, take out a loan or tap into your personal savings.
As a business owner, the only thing you need to do is allow Creatitive to create a custom crowdfunding platform that will meet your company’s needs. This is why our product is better than the mainstream crowdfunding platforms.
As Inc.com points out there are actually two different kinds of crowdfunding.
The first one is “Receiving Rewards.” This is the traditional method of crowdfunding where if someone donates a certain amount of money they will receive a sample of the product that the company is producing.
The other type of crowdfunding is “Equity Crowdfunding.” This allows donors to become shareholders in a company through their donations. In order to run this type of crowdfunding campaign, your company will have to be incorporated.
When looking at both types of crowdfunding, the “Equity Rewards” platform is the most attractive, since the donors become investors and will reap the rewards if the company takes off and does very well.
Now let me be clear, what J.J. Watt did doesn’t fall under “Receiving Rewards” or “Equity Crowdfunding.” The campaign that he ran through youcaring.com was strictly for charitable donations and not to start a company or help a product take off. But it goes to show just how powerful of a tool crowdfunding has become.