The Best Canadian Crowdfunding Fundraiser
You may have heard of crowdfunding, but what is it? Basically, it’s raising money from a large number of people to fund a project. It’s a practice that has gained a lot of popularity in the 2000s on the internet in the arts and music communities. Before reaching that kind of popularity, the first form of crowdfunding was in the 1730s in London, England. Today, there are two main types of crowdfunding: Reward-based crowdfunding and Equity crowdfunding.
Reward-based Crowdfunding
Many websites are known for reward-based crowdfunding, where anyone can be a funder by pre-ordering a certain product or service that’s planned to be launched. This way, entrepreneurs get the funds early without incurring debt and investors participate in the launch of a new product or service.
Everyone’s happy, right? Not really. Funders are often disappointed about the product or service they get, as they do not meet their expectations.
Equity Crowdfunding
Equity crowdfunding involves a different type of investment, as the return is not in a form of product or service. Investors get offered private company securities instead, which means they can potentially get a return on investment as they own a small part of the business, while entrepreneurs get the funds early without incurring debt once again.
Obviously, there is a risk of failure involved in early, platform-driven projects. Creators are not always experienced and projects do not always end up being lucrative.
A Better Crowdfunding Platform
Known crowdfunding websites attract thousands of people who hope to invest in the next big thing, but did you ever realize that for both types of crowdfunding campaigns, the only way to participate is to pony up your hard earned money directly from your wallet?
There’s an even better crowdfunding fundraising platform that doesn’t require you or anyone other supporters to give money. Really, all you have to do is make your everyday purchases using gift cards! FundScrip makes a donation for every gift card purchased and has over 220 retailers to choose from. If you buy a $50 gift card, you’ll get a $50 gift card. You get what you pay for, no disappointment, and you even get a donation that you get to raise for your project!