What are all the characteristics of crowdfunding financing

1. Initialization. The initiators of crowdfunding projects are mostly people who are in the early stage of entrepreneurship. The reason why these entrepreneurs choose crowdfunding as their financing method is that in the early stage of business, the lack of start-up capital makes financing more difficult. Most of the projects financed on crowdfunding websites are in the budding stage of creativity or in the stage of trial production, and the project initiators often do not have enough money to support the advancement and production of the project.

2. Creativity. Crowdfunding projects want to attract the attention of others must have a certain creativity, no creative crowdfunding project is difficult to obtain the favor of investors, it is also difficult to obtain financing success. Looking at some crowdfunding projects around us, no matter it is technology, painting, music or movie, basically there will be some creative elements in it. On those crowdfunding websites, crowdfunding projects with high creativity tend to have the highest pass rate. Therefore, crowdfunding project initiators must consider whether the project is creative or not when launching a crowdfunding project.

3. Advertising. A crowdfunding project will experience a short period of time from initiation to realization. During this time, the crowdfunding project will get continuous attention from investors. If the project is attractive enough, investors will also take the initiative to spontaneously publicize the crowdfunding project, which to some extent increases the advertising nature of crowdfunding.

4. Risk minimization. Crowdfunding money comes from the public, so that the risk that the project initiator needs to bear is infinitely divided. In other words, invariably, the risk that the project initiator needs to take is much smaller.

Most of the time, some project initiators are not incapable of investing in a certain project, but they are afraid to take the huge risk in case of failure of a certain project. With the rise of crowdfunding, project initiators gradually know how to use the power of many investors to diversify the project risk, which can undoubtedly lead to more projects from ideas to reality.

5. Low threshold. A very obvious feature of crowdfunding is that the threshold is very low, any user who knows how to use the Internet, as long as he or she has a good idea, can launch crowdfunding projects on crowdfunding platforms. In addition to this, the scope of financing is no longer restricted by geography when launching a crowdfunding project on a crowdfunding website. People from any corner of the world can initiate investment in a crowdfunding project as long as they are interested in a certain project.

6. Civilization. Compared with "high profile" projects that require multiple rounds of financing, projects launched on crowdfunding platforms appear to be more commonplace. The amount of support for many projects is within the acceptable range of the public, which makes crowdfunding come down from the altar and become more popular. In the era of crowdfunding projects growing in piles, the general public gradually becomes the backbone of support for the realization of projects. --Referring to the relevant literature of Prospect Industry Research Institute