Starteazy Consulting | Sep 13, 2021 |
How to do crowdfunding for a Startup | Best Mode for Startups
Are you a startup? Are you looking for funds? Here I got the answers you need on how to do crowdfunding for a startup.
As the name suggests, the money is collected from the crowd.
Often you must have seen that sometimes two or three people outside our house take a receipt book in hand and go from door to door and collect donations for various purposes such as jagrata, Bhandara or festival gatherings.
Therefore, people resort to Crowd Funding to execute this work.
Although the purpose of talking about Crowd Funding here is not to perform any Jagrata or Bhandara, we aim to tell how it can play an essential role in starting any business.
If we talk about the Crowd Funding Platforms currently available on the internet, it is easy for any person to use them.
As far as the question comes of what are they? The simple answer is that this is a kind of website that helps the startup in generating funds. Some connect both the money raisers and the money givers with each other.
Also, on these platforms, entrepreneurs or other needy can collect money by running their campaigns.
A business can collect money through both offline crowdfunding and online crowdfunding. But, the question is how to do crowdfunding for a startup.
If we talk about offline crowdfunding, most of the funding can collect when people get some benefit in return for the funding they do, like donating to some NGOs’, the fund giver gets tax exemption, etc.
To collect online Crowd Funding, the first person or entrepreneur has to decide how much money he needs to do which business.
And keeping in mind the details of how much money it needs, how long it requires, etc., the entrepreneur has to make his story on these online platforms.
In short, if we talk about how a needy can raise funds through Crowd Funding through these online platforms, then we will find that the first person has to choose the Online Crowd Funding Platform according to his need.
When you search for How to do crowdfunding for a startup, you will come across these major names such as:
The specialty is that up to 93% of the beneficiaries are women. Borrowers on unsecured loans. 5% to 10% interest is payable by the Bank. Rang De gets only 2% on all the loans repaid by the borrowers.
This online platform was started in 2012 by Kunal Kapoor, Varun Seth, Zaheer Adenwala from Mumbai. Currently, it mainly supports three categories in Fund Raising
Ketto charges 5-8% of the total amount collected, or at least $30, whichever is higher.
Fuel A Dream charges up to 9% of the total money collected during the campaign.
It is a platform that allows artists, engineers, and creators of all kinds to share their stories and create online for entrepreneurship, creativity, and social projects. Enables us to come together to raise funds.
Of this, about 15 per cent of campaigns focuses on raising funds for medical treatment. It charges 6 to 10% of the total money collected during the campaign.
This platform was founded in October 2014 in California by Chet Jain, Chaitanya Atreya, Rich Matsuura, two Indians, and an American.
Above all, no fee of any kind is taken from the campaigner under this platform.
Crowd Funding Platform was started in the year 2011 by Mayank Choudhary and Anooj Viswanathan.
Apart from fundraising, this platform also provides loans to the needy. Also, it started with the work of lending itself in the year 2014. Moreover, it also added donations to the platform.
It is a Non-Profit Organization in the year 2014.
The platform helps individuals, non-profit organizations, social enterprises, startups, corporates with their fundraising needs. This platform is also involved in donations, rewards, and investment.
Important Tip: The startup becomes more reliable once it is registered. Moreover, it becomes easy to get funds. Therefore, go for company registration online and get your business registered. So, when you look for How to do crowdfunding for a startup, the first thing to come to your mind should be to get it registered.
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