In simple words, crowdfunding is the process of raising funds for a startup or a social cause. It leverages the collective support of individual investors, donors, family, and friends.
Crowdfunding uses the power of social media via the omnipresent internet medium to reach out to a maximum number of individuals to spread the word about the need to support the business or cause. Reputed crowdfunding platforms, such as Ketto, make use of user-friendly portals that enable individuals to create fundraising campaigns quickly and share them around as widely as possible.
Crowdfunding v/s Conventional Financing Methods: How are they different?
Crowdfunding is an entirely different approach to raising funds as compared with the traditional methods. In crowdfunding, an individual who needs access to finances approaches a large pool of investors or donors and seeks small funds from every investor to collect the necessary amount, whereas, in the traditional method, a business owner of a person may approach an institution or moneylender to request the funds. There is a limited number of investors in the standard fundraising process.
Some unique attributes of crowdfunding
Vast outreach: Thanks to the might of the Internet that enables the broadest and deepest possible outreach, crowdfunding can easily aim at large target segments within no time. Adding to this, a reputed crowdfunding platform, like Ketto, helps empower entrepreneurs and individuals to broadcast a unique business idea or an appeal to help the needy across a broad spectrum of social media channels.
Creative campaign presentation– It is easy to create compelling campaigns for fundraising initiatives using videos and convincing stories to start a fundraising campaign that will hit the bull’s eye.
Gain control of marketing and promotional activities: Right from the launch stage to the final feedback stage, you control all marketing activities of the campaign. It is easy to tweak promotional activities by analyzing the response of target audiences. You can also leverage multiple online marketing platforms to reach the right targets at the right time.
Enables a centralized infrastructure: Crowdfunding helps streamline all fundraising activities, such as creating a fundraiser campaign, sharing an appeal, collecting or withdrawing funds, and sending out individual feedback letters, all under a single roof. You can use a single portal of any established crowdfunding service provider, such as Ketto, to automate all activities.
Crowdfunding v/s Conventional Fundraising: Which is more result-oriented?
Crowdfunding is a suitable financing method if you want to achieve a positive outcome within a short time without investing huge funds and time. Applying for a loan may involve collecting and submitting loads of documents, arranging for collateral, mortgages, and guarantors. The process can take months to complete. Besides, one is never sure about the approval of a loan. In contrast, crowdfunding hardly involves any paperwork, and there is no need to find guarantors if you are using the right crowdfunding platform.
How is crowdfunding driving the economy by supporting social causes?
From a fundraising campaign for the destitute to generate over Rs 2 CR in 72 hours flat to a fundraising campaign for a young filmmaker, who needs to raise funds to produce a film, crowdfunding has come a long way in India. Reputable crowdfunding platforms, such as Ketto, are contributing the lion’s share of such fundraisers by enhancing the trust quotient of the fundraising campaigns, practicing end-to-end transparency, and maintaining the genuineness of the fundraisers. Crowdfunding platforms are popularizing contributions to social causes and are doing a great service to the needy. It is also the most proven way of raising the necessary funds in the shortest possible time.
Why are some crowdfunding campaigns runaway successes?
Storytelling is the most exciting thing about any successful crowdfunding campaign. Moving your prospective donors is the key. It is far better than just asking for financial support. Let the idea excite them, or the plight of a patient or homeless children bring tears to their eyes. You are on the right track if your would-be investors start feeling part of your business proposal or social cause.
Be super-active on social media platforms. You are sure to succeed in reaching your goal if you know how to leverage social media platforms to make a particular concept or story go viral. You have to be adept at using a variety of social media platforms, including Instagram, Twitter, FB, or WhatsApp. Start building a vast follower base to make sure that your upcoming fundraiser will create a flutter.
How crowdfunding is helping startups?
Crowdfunding can help startup businesses convert a prototype into a feasible product or a smart business idea into a throbbing business. Young business owners cannot raise funds through NBFCs because they lack the necessary mortgages or paperwork to get loan approval. Besides, the time factor is critical as the startup idea needs to hit the market in the shortest time to prevent competitors from entering the fray.
Investors are always interested in supporting promising business ideas. They are sure to come forward and invest if a startup entrepreneur succeeds in selling the business concept. Indian economy is pinning high hopes on startups. Popular crowdfunding platforms, like Ketto, can boost the startup economy by providing easy access to necessary funding to launch new businesses. Moreover, small businesses can bypass high rates of interest that may cause the business to crumble under the pressure of EMIs. Thanks to them, one can instantly raise funds to start and operate a business without any delay.
Conclusion
Crowdfunding platforms are providing the necessary traction to startups through efficient fundraising initiatives. All you need is to approach a reliable crowdfunding portal and create a compelling fundraiser. The service provider will make sure that your campaign reaches a vast assortment of donors and investors.
Do you have an interesting business idea, or need to raise funds for a social cause? Reach out to us at Ketto, one of South East Asia’s most trusted and visited crowdfunding platforms, and watch how your fundraiser campaign takes off towards your set goal in no time. Click here to start a fundraiser today!
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