Crowdfunding is the art of financing a project or venture by pooling together small contributions from a large number of individuals, ideally through an online platform.
People use crowdfunding to finance all kinds of ventures and activities: make a film, launch a tech startup or simply raise money for a social cause.
Crowdfunding initiatives work well when you have a strong project idea and an even stronger pitch. The most important thing is to get people to connect to your idea and see it as something useful.
Crowdfunding websites like Catapoolt and Wishberry act as an interface between the individuals with a cause or idea and the potential investors. One simply has to create a campaign, introduce the concept and explain how he/she plans to utilize the funds raised. Other than these dedicated crowdfunding websites, one can also leverage popular social media platforms like Facebook and LinkedIn to reach out to potential investors (often existing friends) and promote his/her cause.
Offering rewards is often the best bet for drawing in more contributors. The rewards can be both monetary or non-monetary. For example, an author seeking contributions to self-publish a novel might offer an autographed copy of his/her book to every contributor.