Benefits of Crowdfunding

Almost $1.5 billion was raised through Crowdfunding platforms globally in 2011, and the growth potential of the industry is still increasingly overwhelming. Experts opined that total funding volume will grow at a rate of 91% in 2012. The estimated fundraising volume globally increased to $34 billion in 2015, from $2.7 billion in 2012, $6.1 billion in 2013 and $16 billion in 2014 respectively. Industry analysts forecast that the Crowdfunding global market will grow at a CAGR of 26.87% during the period 2016 – 2020. Approximately half of this volume is to be raised through charity or donation-based Crowdfunding. 

Crowdfunding projects are financed with small contributions from a large number of individuals and can be an invaluable tool for a person or an organization to raise funds. It can allow them to reach a significantly wider pool of potential donors than with traditional means of fundraising. However, before anyone decides to jump on the Crowdfunding bandwagon, it’s worthy to know what benefits there are for a fundraiser or fund seeker. 

Crowdfunding is not only a great way to raise funds, but also a very smart way to boost a fundraising campaign goal by involving friends. There are a number of benefits of Crowdfunding or fundraising online: it can help overcome funding difficulties for a fund seeker; provide mass valued involvement, publicity and contacts and facilitate access to funds. Nevertheless, we have listed three core benefits below: 

1.       Mass Support or extensive reach to potential donors

2.       Cost-effective fundraising

3.       Instantaneous creation, updates and interactions.