With today’s technology, almost anyone can start their own business. There are many resources to utilize in achieving this goal with one of the most-widely used being the internet. Many startups have created a business plan and are ready to begin producing their product and/or service, but are lacking one important need: funding. Startups need funding, whether it be through investors or personal funding, they all need capital. One form of funding that is quickly growing in popularity is crowdfunding. Crowdfunding, according to Investopedia, is “The use of small amounts of capital from a large number of individuals to finance a new business venture.” This is a great way for a startup to gain capital because instead of requesting large amounts of capital from only a few investors, who usually want a piece of the business, they can request small amounts of capital from potentially millions of individuals. This can be vital for startups as they in particular needs to maximize their assets. As stated earlier, nowadays we use the internet for pretty much everything and this is true for crowdfunding as well. There are several websites to crowdfund through with the top 3 being: gofundme, Kickstarter, and Indiegogo. Almost all the crowdfunding websites have the same layout. First, the project or crowdfunding need has its own page with a link. Second, there is a short description on the page along with a video explaining the crowdfunding need. Finally, there is a list to the side which states a gift you will receive depending on the amount of money one chooses to donate. For example, if you donate $5, you might get a sticker or pen in the mail with the company’s logo, but let’s say you donate $5000, you might get your name on the business plan. Each one has its own policies and advantages. Some cater to specific groups, such as artists, while others are open to anyone. For example, Kickstarter doesn’t accept personal crowdfunding while others like gofundme welcome it. This brings up another use for crowdfunding: personal needs. For example, let’s say you’re a college student and need money for tuition or living expenses. Crowdfunding would be an excellent way to raise money. Another example might be an individual who is down on his luck and needs some money to get back on his feet. This might be a last resort for this individual when he runs out of ideas. So my message in closing is this: whether you have a startup in need of capital or a personal need for some money….Crowdfund it!
