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Kickstarter and Indiegogo CrowdFunding Information - - CFP

posted Apr 3, 2013, 3:08 PM by Andrew Manzo   [ updated Apr 5, 2013, 4:22 PM by David Khorram ]

Crowdfunding has been around for awhile, but it's become more popular and accessible lately through some user-friendly websites like Kickstarter and Indiegogo.

    As we build toward launching our first product, Plant Link, we've had a lot of people ask us what this crowdfunding stuff is all about. It's a great way for organizations - especially start-ups - to raise money for a project, so we wanted to talk a bit about how crowdfunding works and what benefits it offers.

So here's a quick and dirty run-down of crowdfunding:
  • JoeBob wants to raise money so he can build time machines.
  • It's tough to find one person to give him a huge amount of money for his project.
  • Instead, JoeBob asks 100 different people (the "crowd") to each give a little. 
  • In return for their support, these backers each receive a time machine.
  • If JoeBob has a good idea, the crowd will want to give money to his project!
  • If his idea isn't so great, there won't be much support and his project will not see completion.
    Websites like Kickstarter allow people to back projects with a safety net. When people post a project on Kickstarter, they have to set a monetary goal. Interested backers can make a pledge, but no one gets charged unless the goal is met.

    Crowdfunding can be a fun way for backers to help average folks make their ideas and dreams a reality (and receive some cool goodies in return), and it's an excellent way for start-ups and entrepreneurs to raise money for their project and get it in the hands of interested backers.