Crowdfunding Script is an innovative emerging online platform which provides small busi-nesses and startups with opportunities to increase their funding prospects, investment base, and social media presence. Raising funds and acquiring financial backing is very daunting task for an entrepreneur. Crowdfunding is a revolution which has turned the dreams of many entrepreneur with bigger ambitions into a reality. The concept of crowdf-unding is very simple: Instead of raising funds from a group of investors, try to obtain funds through the internet from a large number of people, where each indiv-idual provides a small amount of money. It is not only a place to raise fund, but you can also market your product.
Crowdfunding software promotes Fund raising. These platforms help startups to meet their funding requirements and serve as an online transaction portal. Such Scripts provided by NCrypted is easy to customize and mobile friendly site from which can invite donors to direct the crowd to raise fund. Ncrypted’s Crowdfunding Clone Script is highly scalable, robust and user friendly.
Different types of crowdfunding business models provided in Crowdfunding Script Open Source by NCrypted:
- Equity based
- Donation based
- Rewards based (default)
- Lending based
Equity based: In this type of model, contributors are provided a share in the company. It’s also called a profit sharing model.
Donation based: In this type of model, donor make a small financial contribution to a project without any expectations of financial benefits. Its as means of donation.
Reward based: This type of model offers the donor a non financial benefits as a rewar in return of the funding. There is possibilities of pre-order the product that the entrepreneur is making.
Lending based: In this model the contributor will loan money to the project with the expe-ctation of being repaid once the business gets established, under the terms and conditions agreed.
How can a crowdfunding help a new startup?
- It is a great alternative way to fund a new venture, without giving up accumulating debt or equity.
- Any startup is very challenging and risky. Crowdfunding gives a valuable learning experience and hedges the risks. Today crowdfunding allows an entrepreneur to avoid giving up equity and gain market validation before taking a product concept to the market.
- Active campaign is the best way to introduce a venture’s vision to the market.
- The biggest challenge for startups is to be able to cover all the loopholes that a venture might have at an early stage. By this campaign, the entrepreneur has the ability to engage the people and receive feedback, ideas and comments.
- It gives a prospective loyal customers. Crowd who view the campaign and decide to fund are those who believe in the success of the company in the long run. These early adopters are very important for every business.
- By the Reward based crowdfunding campaign, an entrepreneur can pre- sell a product. This is a good way to analyze the market and gain user reaction to decide whether to continue or pivot on a given concept.
- Its very easy than traditional process of applying loan or pursuing other capital investments during the startups.
This post first appeared on Why The Financial World Needs More Crowdfunding Websites?, please read the originial post: here