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The benefits of crowdfunding


Crowdfunding continues to grow globaly. Total crowdfunding raised worldwide from 2014 to 2016 is $2.1 billion while in 2016 in US total crowdfunding raised was $738.9 billion. The crowdfunding industry is projected to grow over $300 billion by 2025. North America remains the largest crowdfunding market, having raised $17.1 billion in 2017. Asia with fast growing market is catching up with $10.54 billion raised the same year, while the Europe is in the third place with $6.48 billion.

Crowdfunding can be used as afree marketing tool. Crowdfunding paltforms make new projects easily discoverable giving exposure to a lot of new people on the platform. In addition, most platforms incorporate social media makin it easier to share and spread the message via facebook, twitter and other platforms. Also, media often picks up on the popular projectes, providing them with more publicity.

People with limited resources can test their product by using the crowdfunding platform to do pre-sale and market research. Platform will helpwith pre-sale by providing an insight on how big is the demand for the product. That insight is collect from number of people that back the project and their comments. Potential customers can give a valuable feedback on the ways to improe the product which can mitigate the risk of going into the market.

Special thing about crowdfunding that not all supporters want to make a quick buck. It attracts loyal customers and patrons who want to be a part of a great idea by supporting it from the very beginning. Having people united by a belief in the same product can elicit great things in business. in order to find people that are willing to fund your project be sure to spread the word to various investors and don't be afraid to make some changes on the way to meet the demands. It is normal to see your project involve as more people get involved.

Attracting that early contributors is important because they can help drive more people to your crowdfunding project. You can use type of reward crowdfunding where some rewards can be offered to early backers which will encourage them to inform more people about the project and in that way minimize the risk of project failing.

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