INSUBCONTINENT EXCLUSIVE:
Crowdfunding is gradually being acknowledged as a profitable and self-sustainable sector.
The ease of raising funds with the aid of technology, without any regulatory hassles,
facilitates the emergence of 'crowdfunding'
Crowdfunding can be said as an alternative mode of raising money especially for the fund-seekers who seem to have only a few doors to knock
It is no surprise that crowdfunding has lately managed to draw interest not only from the philanthropic entities but also from creative
professionals such as film makers, and from the profit-making organisations, especially start-ups
This largely unregulated mode of funding has emerged as an alternative mode to reckon with because of several reasons.The concept of
crowdfunding is not nascent, but has lately gained prominence on the growing interest of venture capitalists/ investors, and technological
intervention that has made the task of raising funds online no more than a cakewalk
Though it is yet to strike a chord with the for-profit corporate entities, it has undoubtedly turned out to be a boon for the not-for-profit
organisations.Not-for-profit crowdfunding startup ImpactGuru recently raised nearly Rs 13 crore in series 'A' round of funding co-led by
Apollo Hospitals Group and Venture Catalysts
Crowdera, a fee-free online fundraising and crowdfunding platform raised an undisclosed amount of funding as a part of its current
large number of social, creative and personal causes from a mass of people, who are often referred to as a 'crowd' in financial
that helps the fund-raisers first identify, and then reach out to their target audience virtually in a large number
If a fund-raising company manages to reach out to a hundred or thousand individuals through a carefully-shortlisted sample via analytical
tools, the chances of raising funds would be higher than without it.The beneficiaries of crowd-funding may be the not-for-profit ventures in
most cases, but the companies that facilitate this finance-raising are profit-making, and, have managed to carve a niche for themselves by
setting up sustainable profit-making ventures
Crowdera, a crowdfunding platform, is a case in point."I decided to build a company that can last for no less than three to four decades
And it took me seven years of research and over three-and-half years of hard work to establish Crowdera", said Chet Jain, CEO and Founder,
No wonder that it has been embraced both by the not-for-profit and for-profit entities
Not only commercial entities including fledgling start-ups, but also the creative persons including film makers are taking a plunge into the
sea of crowd-funding to find a pearl or two for themselves."Professionals these days love the ease of communication via crowd-funding
platforms driven by shared emotions and much less hassle as mostly it is a pure play contribution against some perk (like a prepayment for
an event ticket, or DVD or hand written note or just a twitter shout out)", added Mr
Jain.The crowdfunding entrepreneurs credit the penetration of internet for the growing success of crowdfunding
"The humans of the internet never cease to surprise other with the things they do - be it trolling or chipping in small doses of
contribution to contribute a bit for the society, they do it all," said Varun Sheth, CEO, Ketto, a donation-based online fundraising
(Corporate Social Responsibility) vision of the company
This helps them to not just make an impact but also give an impetus to their brand.And with the proliferation of crowdfunding agencies,
those who need the money don't need to undergo the hassle of reaching out to prospective contributors/ donors on their own
They can, and in fact, should, engage the online fund-raising companies to effectively carry out the job
In case of not-for-profit organization, it works like this: At the outset, campaign manager interacts with the concerned organization to
check the authenticity of story that is told to the prospective contributors
After campaign manager's approval comes through, the story is put live on the website, and other social channels, so that the maximum number
of people can be roped in for sourcing the funds
As they say the more the merrier
symptomatic of the growing acceptance of this sector as a profit-making proposition.It's probably because of the profit-making ability of
these crowdfunding ventures that they have managed to start to draw a clutch of investors
Marquee investor Anil Advani is one of the investors who pumped in some money in crowdfunding platforms.He explains, "The not-for-profit
online fundraising campaigns are being run on social networks and donations too, are being made on mobiles
The digital era has thus, empowered the fund-seekers and the donors alike
The same applies to crowd-funding investors
"When we present our idea to our investors, they look into each aspect
If investors find your potential enough to lead and expand then they are ready to invest
project, be it a for-profit or non-profit project
For example, crowdfunding has made it easy for a patient in medical emergency from some remote town in India to receive help from someone
from Canada or United States
Indeed, crowdfunding is helping the world believe that #AbundanceStartsWithGiving", added Mr Jain.
