Crowd Funding

04/06/2019
 Do you have a great idea, but no capital to get it off the ground? Perhaps you want to raise money for charity, or to help someone with medical costs? in today's blog, we look at online tools for raising money.


if you want to help or support others, then crowdfunding is a way of doing this. For investors, some also offer investment opportunities. 


Crowdfunding works by raising small amounts of money from a large group of people. In order for it to be effective, you need to have a network to help you spread the word (ideally this is through social media)

Each site guides you to provide the information, and then gives you a link to share (and ask others to share for you). You should have a good rationale or explanation, and photos if possible to explain why you are raising money.

The three I am listing are ones that either I have used, or have been used by people I know well. There is a link to a blog which covers a range of others.

GoFundMe

GoFundMe is one fo the largest crowd funding sites, and is well regarded. You can create an account for free, but they do charge to withdraw your funds from your account.

JustGiving

One of the best known crowdfunding sites is Just Giving.  It's free to create an account, but they do take a percentage of what you raise when you withdraw it to your bank account.

Patreon

Patreon is based on the idea of creative people having patrons to support their work. If you want to support the arts, it's a great way to find projects to fund. Equally, if you want to devote time to your art, and need some capital to give you that freedom, then you can create a Patreon Account. I'm on Patreon as a writer.   Please do consider supporting me! As an artist, you would need to keep in contact with your supporters, and perhaps offer them incentives to thank them for their support.

Funding Circle is an alternative, and offers loans to small businesses, but the funding is drawn from a circle of investors. The rates are lower than many other lenders, and they are well regarded. However, as with all loans, make sure your read the fine print, and can make the repayments. If you have cash to invest, then funding circle is a way of investing in start ups, with a projected return of 4-6%, it will offer a better return than a savings account. Of course there is more risk involved.

This Blog evaluates the range of crowdfunding sites that are available: https://www.digitaltrends.com/cool-tech/best-crowdfunding-sites/

If you are considering crowd funding, then it's worth taking some time to consider the type of funding you need, and then look for the platform most suited to your needs. As always, read the fine print before you sign up!