Crowdfunding is no more a new term to India. Crowdfunding is essentially required in developing countries like India. It is a different kind of approach to raising funds for business. The traditional ways of doing business are now replaced after the Internet-based crowdfunding.
What is Crowdfunding?
Crowdfunding is a process where some people (Friends, Family Members, Investors) donate small amounts of money to start a business. It usually comes into the limelight when the social media and Internet were taking part of our life. The fundraising process for business over Internet is the exact meaning of Crowdfunding.
Benefits of Crowdfunding
There are some advantages in Crowdfunding. It is one of the good business starting concept where you can tell your idea to everyone by sending invitations, contacting PR Agencies and Social Media networks. You can interact with your investors, collect valuable points from people who are interested in your project.
The process is completely transparent, and your Business model is open to market and all. Using a Crowdfunding platforms like Kickstarter can bring top-class clients, investors and advertisers.
Types of Crowdfunding
1.Donation Type Crowdfunding
Without expecting any partnership or profit, crowdfunding can be done. This type of Crowdfunding we usually see in nonprofit organizations, charities, and relief funds.
2.Reward Type Crowdfunding
This type of Crowdfunding involves a reward program, in this type the beneficiary company or organization have to pay rewards to contributors. This type of Crowdfunding we usually see in Kickstarter and Indigogo.
3.Equity Type Crowdfunding
This type of Crowdfunding involves the real business relationship between investor and owner. The investor becomes the part of the company and holds equity according to the percentage of the amount invested.
List of Top Crowdfunding Platforms in India
Rang De is a non-profit organization started in the year 2008. It is very popular in India for creating a simple way to bring investors and companies.
Ketto is founded by Bollywood actor Kunal Kapoor, Varun Sheth and Zaheer Adenwala. It was launched on 15 August 2012.
Milaap is founded in the year 2010 by Jayesh Parekh, Rajiv Madhok and Vijay Sharma. Milaap main intentions is to provide crowdfunding facility to poor and hard working individuals to achieve their ideas.