Crowdfunding Encourages Community Engagement
Crowdfunding is defined as the process of raising money from a large number of people, typically through a website, for a project or small business (Dictionary.com). Crowdfunding has gained popularity over the past decade, especially since the advent of crowdfunding websites, making it easier for users to reach larger networks outside of their inner circle of family and friends.
The exciting thing about crowdfunding is that it multiplies your reach. If a friend of yours contributes or comments, it gets shared with their network, amplifying your reach by hundreds, even thousands. If another person in that extended network shares or contributes to the campaign, another entirely new network sees the activity. If this cycle continues, the campaign has the potential of going viral, even reaching millions of people. The more compelling the story, the higher the likelihood of this occurring.
According to Inc., the first successful online crowdfunding campaign was completed in 1997 when a British rock band crowdfunded a reunion tour. Twenty years later, crowdfunding has grown from a niche platform to a mainstream source of funds for authors, filmmakers, nonprofits, relief efforts, and even small businesses and startups. Crowdfunding makes it possible to set previously unattainable goals and achieve them, through community collaboration. Because of crowdfunding, more ideas are getting shared, independent films have a chance, grassroots political campaigns are possible, and people are getting the help they need.
The crowdfunding community is active, the World Bank Report estimates that the global crowdfunding investment will top $92 billion by 2025. Since 2009, Kickstarter has had $3.2 billion pledged from 13 million people. Specialized crowdfunding platforms like education, entertainment, research, and charitable organizations are becoming popular vehicles to draw specific crowds.
HomeFundMe is designed to help more credit-worthy home buyers raise the down payment for their future homes. Homeowners strengthen neighborhoods and build strong communities. A contribution to a HomeFundMe campaign is a reinvestment in the community. Buying a home is a community event, HomeFundMe can help.
Sources: Inc, Inc, Kickstarter
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