The main goal of crowdfunding is to pool funds in support of newly established companies, disaster relief projects, and political campaigns. Platforms vary when it comes to industry and sectors, donors, debt and equity, geographic distribution, and other factors. What they have in common is the fact that they focus on supply. In other words, they present the opportunities available as to facilitate decision making on the part of investors. The larger the number of attractive options, the bigger the pool of money that a platform attracts. Moreover, crowdfunding platforms help entrepreneurs and start-ups to hedge risk. Convincing others that a product or concept is worth the investment is often hard. A successful crowdfunding campaign is a great way to convince potential investors that your product is better than others on the market. Plus, entrepreneurs receive feedback which is very important.
Infographic courtesy of Seedingfactory
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