What is Crowdfunding?
Crowdfunding is a collective effort of many individuals who network and pool their resources to support efforts initiated by other people or organizations. This is usually done via or with the help of the Internet.
Individual projects and businesses are financed with small contributions from a large number of individuals, allowing innovators, entrepreneurs and all kinds of organisations and associations to utilize their social networks to raise capital.
Project developers can engage the crowd to obtain ideas, collect money, and solicit input on the product, fostering, in this way, an environment of collective decision-making and strengthening the connection with potential customers.
One of the main advantages of crowdfunding is indeed that the supporters are also potential ambassadors of the project, and they will help to promote it through their own networks.
There are four different crowdfunding models, each of which can help you reach different goals: donation-based, reward-based, lending, and equity crowdfunding.
The Stars4All Initiatives are financed through donation and reward-based crowdfunding: in the case of reward-based crowdfunding, each individual that chooses to support one of the Initiatives receives non-financial reward, like products or services, in exchange for their contribution.
Source: "15 steps to crowdfunding", European Crowdfunding Network. More information and videos on the ECN website: http://bit.ly/2ncsRR9