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What is crowdfunding?

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Crowdfunding is funding a project by raising money from a large number of people

Crowdfunding is a form of crowdsourcing and of alternative finance. In 2015, it was estimated that worldwide over US$34 billion was raised this way.

Crowdfunding is often performed via Internet-based registries. This crowdfunding model is generally based on three types of actors: the project initiator who proposes the idea and/or project to be funded, individuals or groups who support the idea, and a moderating organization (the platform) that brings the parties together to launch the idea.

Crowdfunding has been used to fund a wide range for-profit entrepreneurial ventures such as artistic and creative projects, medical expenses, travel, or community-oriented social entrepreneurship projects. The biggest crowdfunding platforms are Kickstarter and Indiegogo.

Source: Wikipedia

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What is Kickstarter?

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Kickstarter is a global crowdfunding platform

Kickstarter’s stated mission is to help bring creative projects to life through crowdfunding. With crowdfunding people can pledge to support your project with money and together raise the sum needed to kickstart the project. Kickstarter has reportedly received more than $1.9 billion in pledges from 9.4 million backers to fund 257,000 creative projects, such as films, music, stage shows, comics, journalism, video games, technology and food-related projects.

People who back Kickstarter projects (so called backers) are offered rewards and one of a kind experiences in exchange for their pledges.

Source: Wikipedia

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What is Indiegogo?

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Indiegogo is an international crowdfunding website

Indiegogo was founded in 2008 by Danae Ringelmann, Slava Rubin, and Eric SchellIts. The site is one of the first sites to offer crowdfunding. Indiegogo allows people to raise funds for an idea, charity, or start-up business. Indiegogo charges a 5% fee on contributions. This charge is in addition to credit card and PayPal charges that range from 3.5% to 9%. Fifteen million people visit the site each month.

The site runs on a rewards-based system, meaning donors, investors, or customers who are willing help to fund a project or product can donate and receive a gift, rather than an equity stake in the company.

In 2014, Indiegogo launched Indiegogo Life, a service that people can use to raise money for emergencies, medical expenses, celebrations, or other life events. Indiegogo Life does not charge a platform fee, so fundraisers keep more of the money they raise. In 2015 Indiegogo Life was renamed to Generosity.com.

Source: Wikipedia

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