The Potential Of Crowdfunding To Help People Achieve Their Goals
Crowdfunding is an Internet-enabled way for businesses or other organizations to raise money in the form of either donations or investments from multiple individuals. This new form of capital formation emerged in the wake of the 2008 financial crisis largely because of the difficulties faced by artisans, entrepreneurs and early-stage enterprises in raising funds. Crowdfunding takes advantage of crowd-based decision-making and innovation, and applies it to the funding of projects or businesses. Using social networks, social profiles, and web-based communication, individuals and companies have raised billions of dollars in debt, equity, and donations for projects. Building a crowdfunding ecosystem depends on key enablers to build trust. This blog explores specific strategies to drive crowdfunding, the risks in crowdfunding and how to mitigate them, and the potential use of crowdfunding in the developing world.
The Growing Popularity Of Crowdfunding In India
Crowdfunding is one of the modern financing techniques and has been utilized to fund a variety of projects, from small businesses and film productions to medical expenses and disaster relief. Although crowdfunding market has only been around for a few years, it has quickly become one of the most popular methods of fundraising. This allows entrepreneurs to bypass the traditional banking system. Banks have become increasingly reluctant to lend money to small businesses, particularly in the wake of the financial crisis. This has made it difficult for many entrepreneurs to get the funding they need to start or grow their businesses. Crowdfunding provides an alternative source of capital that is not subject to the same restrictions as bank loans.
Today, more than 50% of crowd funding campaigns achieve success while over 78% campaigns successes in getting more fund that set goals. The popularity of crowd funding is growing immensely. During 2012–2025, global crowdfunding market generated over $34.4 billion and industry experts are expecting the number would reach around $300 billion by 2025.
Donation-based Crowd Funding Accounting for 70% of Campaigns
Currently, two methods of crowdfunding are highly popular among in the global crowdfunding market, namely donation-based crowdfunding and equity crowdfunding. Donation-based crowdfunding is the most popular type of crowdfunding, accounting for 71% of all campaigns on the leading platforms. This type of campaign relies on donations from supporters with no expectation of financial return. The average donation amount is $88, but can vary greatly depending on the project and platform. The most successful donation-based campaigns have an average raised amount of $9,000.
On the other hand, equity crowdfunding market is a newer way to raise money that allows investors to receive a portion of ownership in the company or project in exchange for their investment. This type of campaign makes up 24% of all crowdfunding campaigns. The average investment amount is $1,000, but can range from just a few dollars to tens or even hundreds of thousands. The most successful equity crowdfunded projects have raised an average of $5 million.
Inspiring Examples: Success Stories Of Crowdfunding Campaigns In India
In India, crowdfunding is increasing. Many people have come to know about the process of crowdfunding and they pick up this option when they need money.
In the past years, crowdfunding was not that popular. But now many people know about these options. So, you can see the success stories in India
Now there are so many crowdfunding websites in India where you can raise funds for your project. And day by day crowdfunding is becoming more known to people.
And technology and the internet are making it easy for people to choose crowdfunding options online. So, the Future of crowdfunding in India really seems bright.
Crowdfunding is legal in India. And here I’m sharing some incredible successful crowdfunding stories in India.
From there, a new digital platform for “Social for Action” crowdfunding has been launched to bring together NGOs and donors. So far funds have been allotted to these organizations – Maher (Pune), Mata Adishakti Social Foundation (Dhule), Eklavya Child Education and Health Trust (Ratnagiri Kudal Project), Bharat Jodo Yuva Akademi (Nanded), Prarthana Foundation (Solapur), and Yashodhan Trust (Satara) under the “Social for Action” campaign.
1. Yashodhan Trust
The information was published in the Samajbhan Sadar about the NGO ‘Yashodhan Trust’ working for orphans, the homeless, and the mentally challenged at Wai on Satara Road. The “Social for Action” campaign called for financial support for the annual cost of treatment of psychiatric health check-ups, medicines and for the construction of a new ashram building. Donors responded spontaneously to this call. At present 60 mental patients are staying in the ashram and construction of the new ashram building has also been completed.
2. Prarthna Foundation
Anantamma Krishnayan and Prasad Mohite, are a young couple running a project to bring poor, low-income, destitute, homeless, and unfortunate children into the mainstream of society through the ‘Prarthana Foundation’ at Morvanchi in Solapur District. Under the ‘School for the Disadvantaged – One Step Towards Progress’ project, financial assistance was sought through the ‘Social for Action’ campaign for the construction of a residential project ‘Prarthana Balgram’ for 300 homeless and destitute children and the elderly on the streets. Donors responded spontaneously to this call. The construction of the ‘Prarthana Balgram’ project building is currently in its final stages through the “Social for Action” campaign and is nearing completion.
3. Eklavya Child Education Health Trust
Considering the scope of problems of financially backward, destitute, and out-of-school children and understanding their need for help the organization wanted to set up separate hostels for boys and girls at Sindhudurg. Financial assistance was sought through the “Social for Action” campaign for the construction of the hostel building and other physical facilities for the ‘Eklavya Balshikshan Arogya Nyas’ organization. Donors responded spontaneously to this call. The work of the hostel of Eklavya Child Education and Health Trust has been completed through the “Social for Action” campaign and many donors. The entire dormitory building is a multi-purpose hall. The dormitory building has rooms for boys and girls dormitories, classrooms, library, kitchen, besides basic amenities like bore well for water and cement tank, toilet, etc.
4. Mark Dharmai Raised 8 Lakh rupees for his Coaching
Mark Dharmai is an international para-badminton player. He is holding a world ranking. But he is a son of a fisherman and was not having money to get coaching in badminton.
His dream was to win gold for India. And he created a crowdfunding campaign to raise money for his coaching.
Then he raised around 8 lakh rupees to fund his coaching fee and travel expenses by crowdfunding. He got popularity for his campaign and got different opportunities to earn money also. So, crowdfunding really worked well for him.
5. Aditya Iyer Raised Funds from Crowdfunding to Publish his Book
Aditya Iyer is a famous author and published his book named “The Great Indian Obsession: The Untold Story of India’s Engineers”. And he was not having that many resources to write and publish the book.
He decided to choose the crowdfunding option. And he raised $14,000 through crowdfunding and published his book.
This is how Aditya Iyer funded his book with the help of a crowdfunding website Kickstarter.
6. Harsha Kikkeri and Shwetha raised funds for their company HoloSuit by crowdfunding
HoloSuit is a tech company. Initially, it needed funds to experiment and launch new things. And the founders raised funds through crowdfunding.
They have chosen Catapooolt online platform for crowdfunding. This online website is for entrepreneurs who want to do innovative things and want financial help.
So, Harsha Kikkeri and Shwetha raised funds for their project. And this is a great success story when it comes to crowdfunding in India.
7. Kenny Basumatary financed his film by crowdfunding
Crowdfunding is helpful for artists who want to take action on their ideas. Kenny Basumatary needed funds to release the film that he created with a budget of 90,000 rupees.
He decided to choose to crowdfund to release the comedy film Local Kung Fu-2. And he did it and also the film won the hearts of the Assam people.
He also directed many different films and many of his films are crowdfunded. He had chosen the ‘Wishberry’ platform which is India’s crowdfunding site for artists.
8. Jasper Paul raised more than 2 crore rupees for his project
Jasper Paul was only 25 years young man who decided to create a project that will help people. He is the funder of The Second Chance. He launched this project to help poor people.
He initially raised 2 crore rupees for this project. He raised these funds on the crowdfunding platform Ketto.
After this, he planned to run more campaigns to get more funds. So, when you have a good reason to raise funds then surely many people will join you and help you in crowdfunding.
Conclusion
Here We’ve shared only a few examples of success stories in crowdfunding but there are so many other success stories. Crowdfunding is a boon for innovators who want to contribute something to India.
By looking at such examples you can realize that money is not the actual problem if at all you want to do something extraordinary in life. If you have a good, innovative idea then so many people are ready to fund you through crowdfunding.
So, you can also raise funds in India through crowdfunding and hopefully, in future days people will set an example for the society and young generation.
Why Crowdfunding is Successful in India?
India is a country where you can find talents in every corner. But as India is a developing country common people can’t afford to invest money in innovation or in ideas. So, crowdfunding is successful in India.
People around the globe come forward and contribute money to your idea if you have a good idea. EVen every common person or even students many times donate their little pocket money to help people. This is how crowdfunding works.
So, where there is a talent, honesty and innovation crowd will help you to raise funds.
New Ideas May Bring More Funds from the People
When you look at some start-ups and businessmen you will come to know that they are successful today because initially, they crowdfunded their projects.
If you want to start your own business and have a unique idea. Then you can also start your crowdfunding campaign online. But remember, your idea should be worthy and helpful for society also. Then only more people will donate money.
Now We’ve cleared your doubt about – “Is crowdfunding successful in India” by sharing so many real examples. So, don’t stop your ideas just because you don’t have money. You can crowdfund your project if needed.
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