Friday, 27 June 2014

How to Start a Crowdfunding Platform

How to Start a Crowdfunding Platform

From 2012 to 2014, the crowdfunding industry experienced a surge in
activity. Globally, the number of registered platforms doubled. Now as
high-profile projects continue to pop up, more and more businesses see
opportunity in niche marketplaces. Without getting
into region-specific legalities, let’s see what businesses can expect
should they decide to start a crowdfunding platform.


What Crowdfunding Model Will the Site Offer?

Perhaps one of the most obvious questions is what crowdfunding model
will you employ: equity, rewards, debt, donation, royalties or
subscription? You may offer more than one or create some hybrid version
so long as you clearly define the portal’s purpose. In the same vein,
think about the rules you want your model to follow (i.e.
all-or-nothing, all-or-something).