What is Crowdfunding?
Crowdfunding is the practice of funding a project or venture by gathering contributions from a large number of people, typically via the internet. In essence, the crowd funds the project.
There are a few different types of crowdfunding. Some are a means to exchange equity in a business for contributions to a campaign and others are focused on charitable giving. But Crowd Scene is mainly focused on what is known as ‘Rewards-based’ crowdfunding.
Rewards-based crowdfunding means that the people making contributions to a project receive rewards in return for their financial contribution. Rewards can be almost anything including discounted versions of the products that are being funded to meeting with the crowdfunders themselves and peeking behind the scenes. Typically rewards are things that cannot be purchased elsewhere. The people who back crowdfunding campaigns are often known as ‘backers’.
The two largest rewards-based crowdfunding platforms are Kickstarter and Indiegogo. Follow the links to find out how each of these platforms works.