The Benefits of Crowdfunding
What is crowdfunding?
Crowdfunding is defined by the World Bank as “raising monetary contributions from a large number of people, typically online to fund a project or venture.” Platforms like ISupportJamaica.com facilitate these contributions by acting as a connection between those seeking support and persons willing to make donations.
The Benefits of Crowdfunding
Ideal for non-profit and for-profit projects
Crowdfunding can provide support to a wide variety of project types that may seek to either support new or existing business venture or support worthy causes. Current crowdfunding models benefit both non-profit and for-profit initiatives through peer-to-peer lending, donation-based giving, as well as equity funding.
Raise funds you need to bring your idea to life
Every idea requires resources to become a reality. For entrepreneurs, this usually meant sourcing funding through a loan or direct investment. Now through crowdfunding, there is an additional funding option that is often free. Charitable causes also receive a major boost from crowdfunding by providing an easily accessible option for donors.
Build Awareness of your Project and Brand
By attracting persons to your campaign, you’re also introducing them to your brand. During the period of your crowdfunding campaign, you’ll be promoting your brand to thousands of eyes across the world. The internet makes it easier to reach large audiences and allows great ideas to spread like wildfire. Rallying thousands of organic users who share your product or service isn’t easy with traditional marketing. Thankfully, crowdfunding doesn’t have a commercial image, so persons are much more inclined to help you out. If enough people start sharing your campaign, it might even go viral which means more backers and more chances of attracting media attention.
Unlike traditional fundraising, crowdfunding breaks all geographical barriers. Hosting your project on a crowdfunding platform allows people from all around the world to engage with your initiative and make a donation. This is beneficial because one doesn’t have to see or meet with the investors or donors for them to be able to chip in.
New Partnerships & Relationships
Create a buzz around your crowdfunding campaign, and you’ll not only attract backers but potential partners as well. Although it might not be the primary focus of your campaign, don’t underestimate the power of a professional network. Optimize your crowdfunding campaign to attract new partners by ensuring your campaign story is interesting as well as engaging and includes testimonials from people you’ve already worked with or work you’ve done leading up to the launch of your campaign.
If your project stands to benefit from investor interest, then launching a crowdfunding campaign could give you an opportunity to raise additional funds. Many professional investors look at crowdfunding as a vetting process to see what new products are worth investing in. If successful, these venture capitalists are excited to put their money into a crowdfunded company.
It’s important to remember crowdfunding is a marathon, not a sprint. Are you ready to begin your journey? Visit our sign up page today to launch your project! Stay tuned to our #ProjectPlaybook for more updates!