What is crowdfunding?

Kraudfanding is a mass cooperation of people,who voluntarily pool their money or other resources to support other people or organizations. It is especially popular for new and unusual projects that may be relevant. Kraudfanding is more popular than public investment, because it involves simple conditions for collecting money and has convenient financing terms.

The first kraudfandingi appeared in the USA, brightan example is the company "Kickstarter" (kickstarter.com), which has been operating since 2009 and is leading in crowd-hosting transactions to this day. It provides various tools for collecting money for various financial projects. Anyone can assess the relevance and prospects of the new project and decide how much it will be necessary to invest for its development.

Kraudfanding is used for different purposes:

1. Development of start-ups;
2. Production of new products and provision of various services;
3. Promotion of new relevant ideas;
4. Business financing;
5. Creation of new software;
6. Maintenance of political campaigns;
7. Assistance to people affected by natural disasters;
8. Development of the entertainment industry.

Funds are collected on the Internet usingSpecial sites, involving different groups and communities of people. Kraudfanding also involves social networks, placing links to projects in interested communities.

The Advantages of CrowdFunding

1. Financial intermediaries work on a certaina well-established scheme that involves raising funds and further identifying ways of spending. Kraudfanding is more flexible than intermediaries, it involves possible experiments on projects and activities.
2. The fundraising time in crowdfunding is always accuratethe information on projects, ideas and distribution of collected funds is maximally transparent and understandable, reports and financial responsibility are assumed.
3. Kraudfanding helps to produce both small public and extensive commercial goods.
4. A small number of intermediaries are involved, which allows reducing the transaction costs for the organization of projects.
5. Kraudfanding promotes the mass attraction of investors, draws their attention not only to the economic side, but also engages social interests.

More information on what kraudfanding read on the site otomkak.ru.