This week we touched on the topic of crowdfunding in lecture. Based on the material, I concluded that the term refers to the practice of funding a project or venture by raising monetary contributions from a large number of people. Also, crowdfunding is usually based on three different aspects: the initiator, the project to be funded, and a moderating company. In Canada we have three types of crowdfunding: donation based, subscription based, equity crowdfunding, and lending based.
But how does crowdfunding work exactly? It is quite quick and simple, it requires you to create fans, have a vote of confidence and develop something that is newsworthy.
Yet, when thinking if crowdfunding would be right for our business we were encouraged to think that we need to create a pitch that is compelling enough, inspire others, be clear about your competitor, and most specifically, be clear on where you stand in the market.