Crowdfunding: How to attract investment

We’ll tell you how crowdfunding works and under what conditions.

What is crowdfunding?

Crowdfunding is the cooperation of individuals who voluntarily pool their money or other resources to implement or support a project or organization. Most commonly, it is carried out through the Internet.

Terms of fundraising.

For example, the following options are possible: to agree on a percentage of the future profit or get money free of charge.

The crowdfunding process

There are five main steps:

1. Formulate the aim of the project.

This will determine which type of crowdfunding is most appropriate.

2. Choose a form of financing.

Based on the objective, choose the financing method: crowdlending, crowdinvesting, crowdfunding with non-financial rewards, or charitable crowdfunding.

3. Choose a platform.

Carefully evaluate the platform you are going to fundraise on so you don’t run into fraudsters. You can verify the platform according to the following criteria: how long the site has existed, its reputation, reviews, how many successful projects have been implemented.

If the site seems reliable, find out under what conditions the partnership is going to be built. Sign the contract.

4. Start fundraising.

Register at the chosen site and provide all necessary documents. Then present your project on the platform and provide marketing support.

5. Payback the investors and pay taxes.

Based on the funding terms, pay the investors.

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