Crowdfunding Guide For Startups: State Of Crowdfunding In India

#News(Startup) [ via IoTGroup ]

And when investors are also hard to convince, crowdfunding platforms can play a key role here in helping entrepreneurs make the most of their ideas.
Based on their requirements, strategies, market analysis and understanding of the business, startups would then be able to pick their choice of crowdfunding platform from the options available.
Moreover, to make the right choice in crowdfunding for business, the entrepreneur also needs to do market research of the crowdfunding platform options properly, to avoid unnecessary hassles.
Crowdfunding refers to the act of raising funds from multiple individual investors or donors for a product or service by sharing some details as well as a development roadmap on a crowdfunding platform.
Each such platform allows entrepreneurs and founders to share basic details of their product, venture or service for the crowdfunders to peruse through.
In this model, the entrepreneur needs to offer their upcoming product or services or certain benefits as rewards to investors or donors, to keep them interested in funding the business.
This kind of crowdfunding for business takes place mostly in case of complex products or services such as tech-driven systems or devices and app-based services since here the degree of risk is higher, and therefore investors need to have thorough domain knowledge or expertise.
Here the crowdfunding platform seeks investors to accumulate funds for a social cause such as helping patients, setting up utility services in far-flung or calamity-affected areas, conservation issues, reforming policy and healthcare or even for class-action lawsuits.
Obviously, this has dampened the interest in equity crowdfunding in India, driving startups and founders to other means such as reward-based crowdfunding or social crowdfunding.

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