Equity based Crowdfunding

The concept of a market came into existence in the ancient past.  People have been devising new techniques to advertise their products and make more profits. They want to sell more products and get more customers and that is their sole aim.

The times have changed over the centuries. People used to go to different parts of the world and sell products like silk, pearls and buy spices and even salt etc. Now, this era is all about door delivery of products through online portals. Community weekend markets and flea markets have started to migrate to the online portals.

The times have also seen the changes in the way the market functions in terms of ownership of companies. From the shareholders owning equity the structure is modifying to crowdfunding now. You can read this post here and understand the intricate details of its mechanism. This is completely influenced by the data available online. The information-driven technologies have taken over the entire fabric of business now.

Stock-based businesses have also changed the way they work. Now crowdfunding means the people contribute to creating a company by providing money through small shares and it is usually online. The contributors may get some advantages by investing their money. In NGOs, they get tax rebates. In others, they get some privileges but most of the time investors know that their money may not come back. The scientific approach to innovation is the backbone of all the crowdfunding. If people like an idea and want to be a part of the innovation process then they contribute freely. Then they do not bother about the returns.

The advertising based on newspapers and other media is slowly phasing out. It is moving to new platforms online. Social media influencers are the new campaigners. Their recommendations are widely followed and they can actually help in crowdfunding as well. People do not mind investing money if it is going to a promising project. Therefore the marketing gurus have to create the right platform to attract more contributors.

Crowdfunding has helped many new talents to take the leap into being entrepreneurs. It is possible only due to the power of social media and the acceptance of new technology. People have moved to the internet and online shopping. They have understood the benefits of small contributions to crowdfunding ideas. So many research projects in the field of AI and the latest technical tools have succeeded only due to the faith of people in them and their contributions.  This has also been a savior for many NGOs.






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