The crowdfunding phenomenon

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Over the past few weeks, I have been doing a lot of research on crowdfunding. This was sparked by a project I am working on and is currently strapped for cash!. I have thought up a million and one ways to find the cash, but selling the idea to a large number of people all at once has yield no success. Welcome to crowdfunding.

What is crowdfunding, well crowdfunding is not a new concept. It has been around for sometime now. For example, the statue of liberty in America stands today as a result of crowdfunding. The story goes something like this: As the statue of liberty was shipped from France. Efforts to raise funds for its pedestal stalled. But thanks to a newspaper campaign and the small donations of hundreds of residents, the base was eventually built. And this was America`s first major crowdfunding project.

Explained into more details, crowdfunding is “the practice of funding a project or venture by raising many small amounts of money from a large number of people, typically via the Internet.”

The phenomenon has been around for a long time and has grow and gained traction largely in recent years through the internet. It has since solved a number of issues from, “musicians, filmmakers, and artists who have successfully raised funds and fostered awareness through crowdfunding”

There are 4 types of crowdfunding:

  1. Donation
  2. Reward
  3. Equity
  4. Debt

People give money/donate to projects and start-ups that they feel passionate about and can see the impact they can have on a community or problem they are trying to solve.

The crowdfunding movement is alive and well in South Africa, but much still needs to be done to grow the power of the crowd in investing in projects and initiatives across South Africa. One such platform is jumpstarter, which with 26 campaigns has been able to raise R 429, 025, 000.

More initiatives like this need to be created across South Africa to create a way for people to harness each other`s powers through collaboration. To stop depending and expecting the government to fund young entrepreneurs and other socio-economic issues that are facing South Africans and Africa. 

Watch the space for more information and thank you very much for visiting my blog. 🙂

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