Crowdfunding is the practice of funding a project or venture by raising monetary contributions from a large number of people. Crowdfunding is a form of crowd sourcing and of alternative finance. In 2015, it was estimated that worldwide over US$34 billion was raised this way. Crowdfunding has been used to fund a wide range for-profit entrepreneurial ventures such as artistic and creative projects, travel, or community-oriented social entrepreneurship projects. In a seemingly nonstop recession wave, small businesses are struggling more than ever to stay afloat, and entrepreneurs are not facing great odds. Crowdfunding offers these individuals a chance at success, by showcasing their businesses and projects to the entire world.
There are numerous donation crowdfunding platforms where entrepreneurs can safely ask for capital such as Kickstarter, Indiegogo, RocketHub, and investment platforms. While each site offers their unique spin, the general concept is the same across the board. Project creators can create a profile typically containing a short video, an introduction to their project, a list of rewards per donation, and some images to elaborate. The idea is to create a compelling message that readers will be drawn towards.
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