Many dreams have been made true and many ideas have come to fruition through crowdfunding. This system of fundraising stems deep into history and has been used to make many projects materialize. However, in today’s digital age crowdfunding offers a better chance and an improved lifeline to many project initiators. By harnessing the power of the internet, through the World Wide Web, more people are reached and in a faster way through campaigns organised by various platform.
In India’s crowdfunding platforms we have organized over 1000 campaigns and have raised a mouth-watering INR 7.5 crore. Simply, we have aided the actualisation of many dreams. Crowdfunding offers much more than just the monetary benefits though. Let’s take a look at the other benefits that crowdfunding offers.
Benefits of Crowdfunding
Every idea, small or huge, requires the input of resources to move it from just being an idea to a product that can either solve a problem or meet a need. These resources hinge a lot on the capital. Entrepreneurs have often been left with the arduous task of sourcing for means to fund their ideas and this has killed so many ideas and dreams.
As opposed to the discouraging system of looking for investors or taking loans and accruing debts, crowdfunding provides a great alternative to funding an idea. Crowdfunding follows the business or product development through to its actualisation. During this transition to its actualisation, entrepreneurs get a clearer vision of the project as they learn more about the project from the feedback gotten from their backers. This learning is very essential to the development of the product.
For instance, the Team 4ze Racing campaign intends to use its resources for research and development of electricity as an alternate source of energy, as well as the manufacturing of parts for their car for Formula Student Electric events in 2016.
Getting the word out there about any product is as important as funding the project. Luckily, crowdfunding offers both. The internet is a network of things and people from all over the globe hence its prowess for quickly sharing ideas and information. A single idea can get to millions of people all over the world in just minutes with the right kind of campaign and innovative marketing.
Crowdfunding enables entrepreneurs to not only introduce their product to the world but share the message and concept behind such product. Backers and fans, in turn, help to spread the word forming a cascade of publicity.
Crowdfunding campaigns give backers, fans, and supporters of the idea the chance to follow the transition phase of the idea. This creates some sense of transparency and ownership and further helps to improve the loyalty of the fan base.
Take ‘Invisible Wings’, for example — a film documenting the story of Vijayan, the owner of a tea stall in Cochin, who traveled all over the world; an extraordinary story about an ordinary person that resonated with various people around the world.
- Crowdsourcing ideas for Better insight
Developing an idea from its raw state into something fit for the market is a tedious process that may put off many entrepreneurs. Crowdfunding offers the opportunity to gain insights into the market through feedbacks from backers and ideas from the crowd. Crowdfunding campaigns help entrepreneurs to better understand the things that really matter and those that don’t such that the product would deliver inch-perfect utility to its market.
Crowdsourcing is a great way to identify the flaws in an idea or product and at such early phase of the product/idea/business development, such asset is invaluable to the entrepreneur. The insights you get from crowdsourcing could even spring up new ideas. Such great asset crowdfunding brings!
Our ‘Spreadfoodlove’ initiative is a classic case of crowdsourcing ideas — food bloggers creating campaigns for the causes they believe in.
The credibility of your project is essential to getting funds for it. Angel investors take particular interest in the credibility or authenticity of an idea or project before endorsing it for any fund. Having a fan base that comprises backers and supporters improves the credibility of such a project. Crowdfunding makes this possible. In fact, a successful crowdfunding campaign improves the chance of getting funds for your project.
Crowdfunding helps share your idea with your potential market thereby preparing it for a potential campaign. Also, crowdfunding brings trust and integrity to your project and helps build your brand for future projects and ideas.
We are hoping to affect a change in the life of 21-year-old KhalizaKhatoon (or GajaLaxmi) life, who suffers from neurofibromatosis, with Soul Angels Group‘s initiative which is raising funds for her surgery.
As a matter of fact, not all crowdfunding campaigns end up being successful but it’s always a win-win situation for any campaigner because they are always productive. Though the project may not meet its goal within the specified time frame, the feedback from crowdfunding campaigns goes a long way to help entrepreneurs better improve their idea, product or business. Better versions of such products end up receiving more endorsements and support from its target market.
Beyond the monetary benefit, crowdfunding introduces the brand to the world, better preparing it for acceptability on its next attempt. Essentially, a campaigner stands to gain more than he would lose through crowdfunding.