If you’re not familiar to the concept, Crowdfunding is an alternative way to raise money from a huge number of individuals via the internet. Most you need to do is make a campaign and upload it on a crowdfunding website and make it viral by making use of sociable media. People who genuinely care about your job and finds interest in the same will add to it. In go back, they are going to get an incentive or equity as the case may be. Because there are several types of crowdfunding, two of them which fit best for startup companies are: 1. Reward based Crowdfunding - Under this type of crowdfunding, the backer gets a prize in return for his contribution. This reward could be a handwritten thank-you note or the early bird custom-made product itself. It depicts the appreciation of the project owner towards the backer, these are those things that money can't buy and offers a special feeling to the backer. 2. Equity-based Crowdfunding - Here, people who contribute to your campaign would receive equity/shares of the company in return. With this unusual technique of raising funds, the financial woes of entrepreneurs are lowering. That they now do not have to knock the doorway of investors, pitching and convincing them till the end. You do not need to be frantic and giving presentations to numerous people. All you need to do is present your business well online.
Crowdfunding permits the entrepreneurs to pitch their idea to a broader audience rather than just specific investors. With social mass media prevailing so much nowadays, it is a lot simpler to find like-minded individuals to contribute to your project. Anyone can contribute to your idea; you simply have to ensure that folks find out about your project. Thus if you have an proven fact that is stuck for funding, get prepared to make it live! Get Crowdfunded!
Here is a financial institution of info on the subject funding a project