“Crowd funding” is one of many new ways to secure money for startup projects. The term describes groups brought together, usually online, to pool money to fund businesses or social programs. It’s one option for securing seed funding to get your business started, especially if your idea might be a hard sell to traditional investors.
How does crowd funding work? Consider Kickstarter.com, a funding platform that focuses on creative projects. Participants create videos that explain their project, creating rewards for backers, and setting their funding goal. If people like the project, they can pledge money to make it happen Backers contribute via credit card, but are only charged if the financial goal is met. If the project falls short, no one is charged. Projects either make their goal or find little support.
Dowser.org offers a list of the “Top 10 Crowdsourced Funding platforms.”
Join the GlassCeiling.com conversation. Have you supported a project or a business through a crowd-sourcing platform? Or has your startup benefited from crowd funding?