Crowdfunding | 60 Second Business скачать в хорошем качестве

Crowdfunding | 60 Second Business

Ever wondered how new products or business ideas get funding before they even exist? Welcome to crowdfunding. Crowdfunding is where businesses or projects raise small amounts of money from many people, typically via specialist online platforms like Kickstarter or GoFundMe. Crowdfunding has revolutionised how entrepreneurs can access finance, making it possible to turn ideas into reality without traditional bank loans or venture capital. There are four main types of crowdfunding: • Reward-based - backers receive products or perks • Equity-based - investors receive shares in the business • Debt-based - lenders receive interest on their investment • Donation-based - contributors support without expected return Real examples include: • Pebble smartwatch raised $10 million on Kickstarter, • Monzo bank used crowdfunding for equity investment, and • BrewDog raised millions through equity crowdfunding to expand their craft beer business. Why use crowdfunding? It validates market interest, builds a customer base before launch, creates marketing buzz, and avoids giving up control to traditional investors. But there are drawbacks. Campaigns require significant preparation and marketing effort. Success rates vary widely. Most platforms operate on an "all-or-nothing" model - you only receive money if you reach your target. Plus, public exposure means competitors can see your business ideas