Opportunity Peterborough Crowd Funding. What is crowd funding? How does it work? Definition: The collective effort of individuals to pool money in order.

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Presentation transcript:

Opportunity Peterborough Crowd Funding

What is crowd funding? How does it work? Definition: The collective effort of individuals to pool money in order to support efforts from other people or organisations. It works when: Someone has an idea but insufficient capital They put this idea on a crowd funding website, with a video and description. The creators state the amount they seek ‘Fans’ pledge money towards the cause

Benefits and Costs Benefits: Financial gain – product can get to market Networking and consumer engagement Reputation boost – useful marketing ‘Fans’ can sometimes gain equity or product Costs: A one-off percentage to the website (5-10%) Usually only occur costs upon the target amount being reached