Crowdfunding has taken in a lot of forms in the past few years and each has a definite role to play in advancing the whole platform. From the donation-based platform that helps other people with their financial need to rewards and equity platforms that assist up and coming entrepreneurs with their initial capital requirements. Social funding is truly a remarkable way to get people involved into a common cause.
The platform relies on a lot of people putting in small amounts that would eventually all add up to the target Amount of the project. Rather than asking a few people for large amounts of money which would mean these lenders are taking on big financial risks, social funding involves the crowd and solicits smaller amounts from them.
The end result is that the risk factor is spread out evenly in small amounts to the lenders and the project is able to muster up the funds it needs to get started with the business idea. But for project initiators, apart from asking people you do not know to put in a small amount in your campaign, the Community you are situated in could play a big part in your project success.
The power of the community crowdfunding
Your community can help you to gather a lot of support for your project and here are a few reasons how they can help you achieve your funding goal.
- People get to help a cause close to their heart. People love to help out especially when they know the person or the establishment that is in need of help. There are some shops that might be going under because they are unable to catch up with the times or they might have fallen into hard times. The community can rally behind a shop just to keep it afloat and open for business because in part, they want to help preserve a part of the community they have grown to love.
- Investors become a close-knit family. Investors might not even be strangers from each other because they could all come from the same community. They can be neighbours, schoolmates or have even said their “hellos” in the same shop that is trying to keep afloat. This can lead to an easier time convincing other people to put in money into the project because they recognise other people that have already made pledges.
- The funds get to rise up quickly. The more people that throw their support for the project, the higher and fund gets and the closer the project gets to its funding goal. The more the community bonds together for a common good; the campaign quickly becomes a success.
- The moral support is amazing. It can be a shop that is about to close or owners trying to procure additional equipment to stay in business. It can even be a community project where it aims to provide a playground for the kids in the community. All these can receive funding from the same community it is operating it but more than that, the moral support it can get from the people around it can be spectacular. There might even be others who would show up and just let the initiators know how they appreciate the project and what it can do for the community.
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This article is written by the Crowdfunders Editorial Team. In Asia, Crowdfunders.Asia is a leading portal on providing news related to crowdfunding, start-up, property and business. It is operated by CoAssets.com. CoAssets is South East Asia’s first listed and largest real estate crowdfunding platform. If you have any Crowdfunding news or stories to share, please email [email protected]