Crowdfunding: What is it?

Everyone talks about crowdfunding, especially in Mallorca that attracts many innovative startups that need funding to keep developing their projects. It’s a fairly new trend that’s been popping up on social media for a few years but… what is it? Where did it come from? What role do you play in all this?

what is crowdfunding

What is “crowdfunding”?

crowfunding means “collective funding”.
The philosophy of crowdfunding is that individuals, one by one, can make it possible with their small contributions, which come to finance large creative and innovative social projects. Adding individual donations from all the people who support a project can get the money needed for its development.

Everyday we see networks of young entrepreneurs and start-ups announcing crowfunding campaigns to finance their projects. To reach their goal, they are given a limited amount of time, usually between one to two months, during which anyone who wants to can donate. A small contribution can give life to a great idea.

How and where is it done?

On the internet there are many specialized platforms just for crowfunding. Everyday there are new ones, but the most largest are Indiegogo and Kickstarter, both born between 2008 and 2009 in the U.S., extending its use to everyone around the world.

What role do you play in all this?

You can show your support for the projects posted in these platforms in several ways. One way is by making a donation to the project, so in return you will receive a thank you gift or “perk”. Each project explains what reward can be obtained according to the amount of the donation made. It may be, for example, an entry for a sweepstakes, gift certificates, or even the product itself!

Another way, and the greatest way to support a campaign, is to share the link and help in spreading the word to friends, family, acquaintances, social networks. and anyone you can think of!

For the project that are still pending review from the crowdfunding platform, each click counts! Since these platforms determine what projects are the most popular, your clicks will help the startups get more visibility on the page and on other sites.

Not to mention it will bring attention to these startups and their vendors!

Everyone talks about crowdfunding, especially in Mallorca where there are many innovative startups who need funding to keep developing their projects.

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