How does the crowdfunding model work?

Modern crowdfunding refers to issuing fundraising projects and raising funds through the Internet. Compared with traditional financing methods, crowdfunding is more open, and whether to obtain funds is no longer based on the commercial value of the project. As long as it is a project that netizens like, they can get the first fund to start the project through crowdfunding, which provides unlimited possibilities for more small-scale operators or creators.

Rules:

1. A fundraising project is successful only if it reaches or exceeds the target amount within the time preset by the sponsor.

2. If the target amount is reached or exceeded within the set number of days, the project is successful and the sponsor can obtain funds; After the fundraising project is completed, the sponsor will get the reward promised by the sponsor in advance, which can be in kind or service. If the project fails to raise funds, all the funds obtained will be returned to the supporters.

3. Crowdfunding is not a donation, and the support of all supporters should be rewarded accordingly.

Extended data:

Composition:

Sponsor: a person who is creative but lacks funds;

Supporter: someone who is interested in the story and return of the fundraiser and has the ability to support it;

Platform: Internet terminal connecting sponsors and supporters.

Baidu encyclopedia-crowdfunding