As i noticed that the rewards for the direct posting through #proofofbrain front-end are much more higher than those made from the integration of plugins to website.
Today's post by made it even clear that he would curate only those posts which are posted from this front-end and generate engagement. In recent posts i understood that my posts are generating the engagements but were not posted through this front-end.
Hence, i am making my post on financial concepts through this front end. Today's post is about crowdfunding.
History of Crowdfunding
Crowdfunding is not actually a new concept. In the 18th century, writers and musicians were collecting money from many investors to spread their creations across the societies. Crowd funding is now similar to non-government organizations gathering aid to build schools or to carry out a social project, such local communities can now reach a larger audience with the contribution of the Internet. It is said that it is an updated version of the traditional fundraising process.
(Image Source: Google)
Definition of Crowdfunding
Crowdfunding is raising small amounts of money from large number of small investors. Crowdfunding, is a new investment trend in the world, has been introduced as a way to help small businesses and entrepreneurs looking for investment capital to remove their business ventures from scratch.
(Image Source: Google)
Types of Crowdfunding
- Donation-Based Crowdfunding is a way to fund a project by asking a large number of participants to donate a small amount.
- Reward-Based Crowdfunding involves identifying rewards at different levels corresponding to collateral amounts. A standard reward campaign offers at least three levels of collateral/reward.
- In peer-to-peer (P2P) or Debt Based Crowdfunding system, start-ups borrow money from several people online and pay them back after the project is over.
- In the Lending type of Crowdfunding System, entrepreneurs created a periodical fund in the form of loans they would repay to lenders on a predetermined timeline with a set interest rate.
- In the Equity Crowd Funding system, investors invest in a company that is not quoted on the Stock Exchange in exchange for equal rights in the shares of the shareholders.