Crowdfunding is when a group of individuals pledge or donate towards a common project goal outlined by the creator or entrepreneur. As crowdfunding is mostly conducted online, it has grown with the rise of social media.
Social media outreach enables the campaign creator to spread the word and passion for their project throughout their networks and beyond.
Reward based crowdfunding is when the campaigner offers something in exchange for monetary support - often a pre-order of the product or 'experiential' rewards. Many creatives and entrepreneurs in Australia and overseas have tapped into the passion of the crowd to get their projects off the ground.
Although creative and entrepreneurial crowdfunding projects tend to receive the most media coverage, when it comes to people-powered business, equity-based crowdfunding has attracted much interest.
In May 2014 the Australian Government's Corporations and Markets Advisory Committee (CAMAC) released their report into Crowd Sourced Equity Funding. You can access the report here CAMAC site
Author of Crowdfund it!
To find out more about crowdfunding, including comprehensive chapters on how-to, buy a copy of Crowdfund it! in print or digital editions directly from the publisher edita.