Crowdfunding Potential

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Over the course of the past several years, a revolutionary new fundraising method has emerged as a viable alternative to traditional lenders: crowdfunding. Originally developed to quickly raising capital for charitable causes and artistic projects, the JOBS Act of 2012 opened the door for equity crowdfunding. Crowdfunding is a global phenomenon, and has attracted funding for a lot of purposes. Crowdfunding  is more-likely an Internet-enabled way for businesses, people, or other organizations to raise money in the form of either donations or investments from multiple people.Some notable examples include the aforementioned Fundable, as well as AngelList,  OneVest, and GoFundMe.Meanwhile, GoFundMe is the most popular platform used by many. GoFundMe allows people to raise money for events ranging from life events such as celebrations and graduations to challenging circumstances like accidents and illnesses.Damphousse and Ballester created the website under the name “CreateAFund” in 2008 but later changed the name to GoFundMe after making many upgrades to the features of the website.

With traditional banks less willing to lend, most people like entrepreneur started to look elsewhere for capital.Crowdfunding became the ideal solution to fund start-up capital or paying out debts.Even when a great business idea exists it is not a necessary that the donations will pour in automatically. There needs to be a properly prepare campaign to generate and support interest in the project. It is a good idea to spend some time and effort to assess potential interest in the project before officially asking for funds.Trust does not just happen , it is a socially mediated phenomenon which relies in great part on the intrinsic trust people place in shared connections on social networks, community affinities, and the ratings of others on trusted, mainstream websites. Social media such  as  “Facebook and Twitter ” mostly became the leverage to attract people, family, and friends directing to the crowdfunding site.When it comes to  business ,crowdfunding represents a myriad of exciting opportunities for the businesses who that use equity-based platforms, because it allows qualified investors to pool their resources.

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