14 Dec What is crowdfunding?
I’m sure you’ve heard the word “crowdfunding” being used when referring to a way a business can expand without having to borrow money or by using your own money.
So what is crowdfunding? Let me break it down for you.
Crowdfunding allows you to raise money for your business through the help of your friends, family, customers and even investors. It’s as simple as that.
Here at Creatitive, we offer a custom crowdfunding platform that will give you the flexibility that will allow you to customize your campaigns in a way that no other company can. One of the benefits of crowdfunding is that it allows you to reach a large number of investors that are interested in helping your company be successful. Your crowdfunding campaigns can be easily shared on social media websites like Facebook and Twitter as well through email newsletters, in order to expand your maximize your reach.
There are three kinds of crowdfunding; donation-based, rewards-based and equity-based.
Donation-based is very simple. People donate money to help fund your company or a specific project that you’re working on without anything in return.
Rewards-based, is when your company will send someone a sample of a product or some kind of gift after they give make a donation through your campaign.
Lastly, equity-based, is the most attractive for investors because it gives donors equity in your company that will allow them to make money off of your success as a business.