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How does crowdfunding work in India? By Utkarsh Sharma

  in Society | Published 2018-09-05 06:03:03 | 114 Reads | Unrated

Summary

Crowdfunding is an ancient concept prevalent in India where individuals put money for a common goal to fund a project or a social cause. Online Fundraising India has taken the country the rage and it is rapidly emerging as an effective alternative funding method.

Full Content

Crowdfunding is an ancient concept prevalent in India where individuals put money for a common goal to fund a project or a social cause. Online Fundraising India has taken the country the rage and it is rapidly emerging as an effective alternative funding method. There are various types of crowdfunding in India like equity, donation, reward-based etc. and online crowdfunding websites like Impact Guru provide you the exposure and the platform to start your very own campaign.

Online crowdfunding is all about donors or investors contributing small amounts of money depending on their

capabilities, just by the internet. Crowdfunding targets individual donors and has no minimum benchmark of contribution. The campaigners have to persuade people to follow or support the fundraising campaign and spread the word around via social media and attract contributions from all around the world.

Crowdfunding is being used for various reasons in India.

1. Personal reasons:  Crowdfunding can provide you funding whenever you face any financial challenge in life. You can use crowdfunding to fund medical treatments, education, NGOs, social cause and more. Any personal need or interest that you cannot avail due to the lack of funding, can be resolved by crowdfunding.

2. Startups and entrepreneurship: Startups have seen a massive boom in India, especially among the youth. The only drawback to the growing economy is the lack of funding and investors. Also, the government has come up with more startup-friendly measures like no taxation for the first three years etc., which is why more and more people are looking for starting new businesses. But traditional investors and sponsors cannot trust the entrepreneurs due to their lack of experience and credibility. Banks are also reluctant to give out loans without enough collateral assets involved. So crowdfunding is the most appropriate way out for the entrepreneurs.

3. College loans: If you have taken up educational loans and are unable to pay the amount back, crowdfunding can help you out. If you have legitimate reasons of financial crisis then the donors will help you out in your dilemma. Actually, crowdfunding can help you repay other debts like personal loans, home loans, etc.

There are certain legal implications of crowdfunding in India. Firstly, crowdfunding is indeed legal in India. Every form of crowdfunding is legal in India apart from equity-based crowdfunding, which will soon be legalized. Crowdfunding in India is regulated by the Securities and Exchange Board of India, or SEBI and they have laid down guidelines which have further secured the legitimacy of fundraising in India.

Crowdfunding in India is operational now by crowdfunding websites in India who provide exposure to your project and help you sort the fundraising. All you have to do is come up with a compelling account of your campaign, set a goal amount and promote it. Platforms like Impact Guru, take a minimal charge for starting your campaign and give you absolute freedom of driving your campaign with assistance at every step.

 

 

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Comments

fafej edngv :Apps like Moviebox. A movie application that does not update its movies regularly is not worth having or keeping on your device

pikachu chu :Thank you for providing information about fundraising services for the support community in India. the impossible quiz

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