Traditional Culture Encyclopedia - Traditional virtues - What is crowdfunding? What are the benefits of crowdfunding?
What is crowdfunding? What are the benefits of crowdfunding?
1, low financing risk.
Applying for a loan will tie yourself to financial risks, and the advantage of crowdfunding is that when you receive the start-up funds, you only need to provide rewards to the investors.
All crowdfunding projects can't be rewarded with equity or funds, and the project sponsors can't promise any economic benefits to their supporters. They must be rewarded with goods, services or media content. Supporting a project is a purchase behavior, not an investment behavior. Therefore, entrepreneurs with crowdfunding financing don't have to worry that if they fail after accepting donated funds, they can't return the money of those donors.
2. Attract potential long-term supporters
The earliest people who supported the project were those who made in-depth investigation and highly recognized the project, and these people are even expected to become members of the project in the future.
A crowdfunding project can give you more opportunities to communicate with different people, and those donors will be interested in your career because of your creativity. Every donation is an opportunity to establish contacts, from which strong contacts and long-term supporters are generated.
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