Everyone has heard about the Brit trying to raise enough money from European citizens with crowdfunding to save Greece. The technology always comes down to engaging a lot of people to finance a company or project with small amounts. Hence the English term “crowd”, which means as much as mass or crowd. Even Barack Obama used it to finance his last election campaign.
Maybe with crowdfunding you can get the money you need to realize your project.
Participative financing gives you the feeling that you are an investor, while limited resources are sufficient to increase the chances of success of a project. Give symbolically 1 euro or invest 50 €, 1,000 € or more if you firmly believe in the idea.
All organizations – commercial, cultural and social – can use this financing method. When a crowdfunding site picks up an idea, potential investors receive a call via the internet. The initiator explains his project and indicates how much he needs to bring it to a successful conclusion.
If the project convinces enough investors and the required amount is collected within a certain period, the entrepreneur will receive the budget. If the promotion fails, the money goes back to the individual investors. There are different formulas and sometimes the investor receives something in exchange for his contribution: interest, one of the first products to come on the market, a work of art with signature, a ticket for a performance, an exclusive gift, etc. Sometimes he can also participate in the capital of the newly established company.
Good to know: crowdfunding is also possible for gifts. In that case, the money collected is definitively acquired, without consideration. This formula is mainly used for humanitarian projects.