Crowed Funding a latest term but an older concept; can e-entrepreneurs get the use of it?

Crowed Funding a latest term used by online entrepreneurs when raising funds for their startups, though the concept seems to be older than it appears to be. The logic behind ‘Crowed Funding’ denotes receiving small donations through a huge amount of crowed (people), for the startups that include many online voluntary services. Wikipedia can be the best example for an online resource running successfully in the land of internet with the benefits gained by Crowed Funding. Diaspora a non-profit social networking site is also popular for Crowed Funding, which raised 200 000 $ in seed money through a Crowed Funding platform. Hence, many e-entrepreneurs have started using Crowed Funding as the prime source of financing to their startups.

However, it cannot be expected that ‘Crowed Funding’ can be the solution for all types of startups or even to run all types of existing businesses.  If someone is willing to donate for our startups, it should be understood that the reasoning behind would be really serious. Millions of people are willing to donate to Wikipedia since this site has turned be a FREE important source of online learning for many people and they honestly want that the site to be running without having to face any difficulties. However, there are several other reasons for why people would bother to donate. Few years back, a young entrepreneur created a concept named ‘Million dollar website’ and the only intention for his starting was to cover his school payments. The ‘Million dollar website’ had one million cells in the home page, and the initiator promised that he would display one million advertisements in one million cells. His deal was quiet simple, yes..he sold each cell for an advertisement just for one dollar, and he earned one million dollars within one week of time. It may seem like a transaction, but is a kind of Crowed Funding since Crowed Funding does not necessarily expected to be free at all times.

Depending on the requirements, Crowed Funding may occur in different forms. Sites like Wikipedia do not promise to offer something in exchange, as they are completely free to the users that itself motivates donations. I have seen several sites filled up HTML tutorials always have a button for DONATE and there is no doubt in that the users would do so since such sites really stimulate a good learning for them. In case of Diaspora and other networking sites, people understand the importance of running such sites and tend to donate them as well. However, some creative Crowed Fund bidders tend to promise something in exchange such as a valuable e-book, or a free membership, or even a free advertisement space in their websites. Kickstarter, RocketHub, Seedrs and Grow VC are some Crowed Funding platforms where entrepreneurs can bid for a fund stating all their requirements. I think, there will be a boost for entrepreneurs who get the use of Crowed Funding in the new future considering to the importance given to this topic in the press releases.     

By

Mathangie

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Posted in: Crowed Funding,e-entrepreneur,Kickstarter,small entrepreneurship