Individual case assignment
We discuss about Crowdfunding, internet crowdfunding, process to get funding on internet, models of crowd funding, project that succeed greatly, advantages and disadvantages.
Crowd funding, Crowd sourcing, Peer to Peer funding and so on have many names but only one definition that is rising expenditure for a project which may be creating or producing a movie, song, new invention, product or an idea from many people in small investments. These altogether will make a necessary help for a project to succeed. Crowd funding is not all about the money it may be a help in developing or in success of a project for example open source software and operating systems are open to large group of people especially for the developers to edit or modify or even add new features to software by removing bugs and errors is also considered as crowd funding and in this case as consider as crowd involvement.
Crowd funding is very important for normal people who want to achieve something and to be accepted both physical and mentally by people but have no income for the startup. Due to crowd funding benefits are not only restricted to whom it is receiving but also for those who are sponsoring. The benefits for the sponsors will be non-profitable benefits for what they have invested like receiving credits, rewards and gifts like first copies of the product, dinner and meeting with the developers or team of the project which are consider as priceless for people like fans or who are motivated.
Traditionally funding rose from a group of people or organization who considered as one as single entity group usually called as sponsor credited and rewarded. Now due to technology development and social media the idea and concept was distributed and reached to millions and billions of the people around the world who are different and diverse, funding the idea for its implementation. In this race, the websites are best platform to present and expose ones ideas for startup funding.
In internet crowd funding, first the seekers will post their ideas on the websites like Kickstarter, indiegogo, crowdfunder, rockethub and quirky by giving the details about the idea and his or her motivation for the idea and make a sample video and may even present a prototype with expected funds and time for implementing the idea. Then the funders called as backers in Kickstarter will promise or pledge money for idea and that money distributed to the seekers when the targeted money reaches with in the time. This money used to complete the task and make that idea to real by the seekers and rewards and gifts sent to the funders.
According to Wroldsen (2013), “Crowd funding on the internet is dived into five models they are the donation model, the reward model, the peer-to-peer leading model, pre-purchase model and equity model” (Wroldsen, 2013). The funding made in the form of donation with no intention of the profits or other benefits from the receivers is donation model...