As i noticed that the rewards for the direct posting through #proofofbrain front-end are much more higher than those made from the integration of plugins to website.
Today's post by @vempromundo made it even clear that he would curate only those posts which are posted from this front-end and generate engagement. In recent posts i understood that my posts are generating the engagements but were not posted through this front-end.
Hence, i am making my post on financial concepts through this front end. Today's post is about crowdfunding.
History of Crowdfunding
Crowdfunding is not actually a new concept. In the 18th century, writers and musicians were collecting money from many investors to spread their creations across the societies. Crowd funding is now similar to non-government organizations gathering aid to build schools or to carry out a social project, such local communities can now reach a larger audience with the contribution of the Internet. It is said that it is an updated version of the traditional fundraising process.
(Image Source: Google)
Definition of Crowdfunding
Crowdfunding is raising small amounts of money from large number of small investors. Crowdfunding, is a new investment trend in the world, has been introduced as a way to help small businesses and entrepreneurs looking for investment capital to remove their business ventures from scratch.
(Image Source: Google)
Types of Crowdfunding
- Donation-Based Crowdfunding is a way to fund a project by asking a large number of participants to donate a small amount.
- Reward-Based Crowdfunding involves identifying rewards at different levels corresponding to collateral amounts. A standard reward campaign offers at least three levels of collateral/reward.
- In peer-to-peer (P2P) or Debt Based Crowdfunding system, start-ups borrow money from several people online and pay them back after the project is over.
- In the Lending type of Crowdfunding System, entrepreneurs created a periodical fund in the form of loans they would repay to lenders on a predetermined timeline with a set interest rate.
- In the Equity Crowd Funding system, investors invest in a company that is not quoted on the Stock Exchange in exchange for equal rights in the shares of the shareholders.