Traditional financial are believed to be in danger of becoming a thing of the past, in the face of new and alternative techniques that are becoming an integral part of an economic system – yes, we’re talking about crowdfunding and peer-to-peer crowdfunding. When there are fintech platforms like Impact Guru that provide financial support to a crowdfunding India, without risking people’s assets or having to repay debts, why wouldn’t a person in grave need of financial assistance, opt for something like this? Crowdfunding India has been incredibly successful in helping individuals, families, and nonprofits raise money for medical treatments, education, and social causes – but the potential is far greater that we can imagine. Peer-to-peer crowdfunding is paving the way for a sharing economy, where people rely on one another for financial support, rather than big financial institutions.
Technology’s impact
Understanding the role of technology in facilitating the culture of sharing is crucial part. Technology and the internet has brought the world closer together, reduced gaps, even. Take for instance the concept of sharing cabs on the likes of Ola and Uber, or sharing homes on AirBnB. When you book a shared cab, you pay a lot less money for a ride. Similar is the concept with AirBnB, and also partially with crowdfunding and sharing economies, where small contributions from a large number of people reduces individual risk.
Crowdfunding India concepts to suit all fundraising needs
The beauty of crowdfunding is that there are different types to suit the purpose of a crowdfunder. Donations based crowdfunding which has already boomed in India. Then we have equity-crowdfunding (not very common due to legal implications), where the contributors would technically become stakeholders. Rewards based crowdfunding promises the contributor a small or large reward (depending on the amount contributed) in exchange for the financial contributions. Finally, debt crowdfunding, where a contributors can expect interest on profits, effectively becoming an investor.
Reinforces social responsibility
By encouraging new and innovative economic models such as peer-to-peer crowdfunding, we are empowering young entrepreneurs to be fearless and independent in their professional careers and business. Moreover, crowdfunding, especially in India has always been associated with social responsibility, and giving back to society. When you combine the the two concepts you have social enterprises and society that are interdependent on one another.
Having said all of this, it important to clarify that the success of a crowdfunding campaign is heavily reliant on the efforts made by campaigner, in terms of creativity and communications. So if as a new entrepreneur rising money, you’re dedicated to working towards a crowdfunding campaign, then it could just serve you needs.
The sharing economy is slowly seeping into every into every sphere, and consequently impacting economic development. On these grounds, one can say that crowdfunding has a bright future in the economic system.
