“A unique value of crowdfunding is not money, it’s community” (Mollick, 2016)
Crowdfunding can define as, “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.” Crowdfunding acts as a platform, matching innovators with those who need innovation, and thus is reshaping which ideas come to market.
However, crowdfunding is more than another way of raising funds. It’s a connection of investors and entrepreneurs directly with customers and funders who interest in your project. It helps a business to transform and grow.
Rather than relying on venture capitalists and marketers to try to project demand for new innovations, creators can directly reach out to customers and communities to refine ideas and estimate interest.
Successful crowdfunding serves to validate demand and build communities of their supporters.