Consolidated's Website Compass

10 WebsiteCompass C rowdfunding is a way to get money to fund a creative or nonprofit pursuit, bootstrap a business, or get assistance for a personal or medical situation beyond your financial reach. The idea is to get a crowd of people to donate to a cause they sup- port, sometimes with the expectation of something in return. How It All Got Started The practice of crowdfunding as we know it today started in 1997 when fans donated $60K to a British rock band to fund a reunion tour. Since then, many other projects and businesses have used crowdfunding to get their start, including the Oculus Rift virtual reality device and the Exploding Kittens card game. In 2000, the rewards-based, fan-funding platform called ArtistShare ( ) was introduced to raise funds for creative projects. This site served as a model for others including IndieGoGo ( ) , founded in 2008, and KickStarter ( ) , founded in 2009, as well as the now-defunct PledgeMusic. Crowdfunding has expanded to include several different ways to participate: • Rewards-based. When you donate to a rewards-based cam- paign, you get specific rewards tied to the amount you donate. Rewards range from a simple thank-you note to a handcrafted item to a manufactured product. • Donation-based. In this type of campaign, you donate without the expectation of getting anything in return. • Equity-based. If you want to support a budding business, you can get equity in it in exchange for your financial contribution. • Debt-based. Here you lend money to the entrepreneur run- ning the campaign and they eventually pay you back the principal plus interest. This type of crowdfunding is also known as peer-to-peer lending. Personal Causes Crowdfunding can be used for many purposes, including paying Want to Join the Crowd With Crowdfunding? Request money for an emergency or get a business off the ground Social Media Basics Source: