Crowdfunding involves a total of investments by a large number of people through an online platform. Crowdfunding varies according to the product and services that startup offers and its growth model. Kickstarter marketing services companies helps in making your campaign successful and famous.
In Reward-Based Crowdfunding, the investors receive a token of appreciation from the investment which can range from the company's merchandise offers or can be as simple as a tee. This crowdfunding is prosperous if the investment is capable of pitching and exerting the usefulness of ideas to the public.
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In Equity-Based Crowdfunding, investors receive a share of the company in proportion to the money invested. It is like investing in an unlisted entity and hence very important that the investor understands the risk while committing investment in equity-based crowdfunding.
In Debt-based Crowdfunding, the contribution made by the investors is treated as a loan. The money invested earns a fixed interest and the company is liable to repay the amount invested after a fixed period. It is comparable to the institutional setup currently present for offering loan services.
Broad Investor base provides for wider access to the investors who believe in the venture and its goal. The selling cost is cut out in crowdfunding platforms due to its huge audience.
Feedback plays an important part in covering the loopholes in the venture and the idea pitched. Community participation during crowdfunding provides a platform to pitch new ideas and improving the current product.