We often hear people thanking others for their success, be it their parents, mentor or partner. Have you ever heard someone thanking people for their success? While thinking of starting your own business, the first thing that comes to one's mind is funding.
Personal savings, loans from friends, relatives, and bank loans are the most popular way to finance a business startup, and with a detailed business plan. With the changing times and technology, now we have an alternative source of funding is available for crowdfunding startups. Get more information about crowdfunding through https://crowdfunding-platforms.com/real-estate-crowdfunding.
For those not familiar with the concept, Crowdfunding is an alternative way to raise funds from a large number of people through the internet. All you need to do is prepare and upload campaigns on the crowdfunding website and make it viral with the help of social media.
People who really care about the project and findings similar interests will contribute to it. In return, they will get a prize or equity as the case may be. Since there are different types of crowdfunding, two of them best suits for startups are:
- Reward-based Crowdfunding – Under this type of crowdfunding, supporters rewarded in return for the contribution. The reward could be a handwritten thank you note or an early bird customized product itself. It describes gratitude to the supporters of the project owner, these are the things that money can not buy and give a special feeling for the supporters.
- Equity-based Crowdfunding – Here, people who contribute to your campaign will receive equity/shares of the company in return.