The revolution of traditional methods is no longer as rare as chicken teeth. Collective financing is one of the best cases that can be cited as relevant to the above statement. People around the world are adapting this technique as the main source of fundraising for their idea, project or cause.
He is raising funds from a large number of people (crowd) over the Internet. The people who contribute to or support your project are your friends, family, relatives, or your clients. While the concept is quite popular among people, are there many who didn’t even know what crowdfunding is?
Entrepreneurial students occupy the largest part of this category. There are a lot of reasons why these students are unaware of the concept. Most importantly, they simply don’t know the pros and cons that crowdfunding offers when running the project. As the phenomenon achieves worldwide acceptability, there are many crowdfunding platforms. They are doing an admirable job of educating people about the technique, but there is still a long way to go. It is difficult to identify which platform fits a particular genre and where the right audience can be found.
Also, the best way to influence what is avant-garde is by looking at models or mentors who have obtained successful crowdfunding before. The stories of these heroes do not go viral, and therefore enterprising students make virtually no effort to know the same.
Participatory funding is a win-win situation for each and every project owner, but entrepreneurial students are still in a more advantageous state. As one of the checkboxes to be assured while contemplating obtaining crowdfunding, it is to have a large community of followers or audience. Entrepreneurial students have a huge campus network. Many students share posts, content, and images that go viral in a matter of minutes on campus. Therefore, they already have an existing audience base to target.
Because they have low professional experience and credit rating, entrepreneurial students are at a disadvantage because they cannot apply for a loan or turn to investors. Collective funding can provide them with funding and they could also get valuable feedback and advice from community leaders, which would otherwise be lacking. They also have the availability of a network of alumni where they could find experts and professionals to support them through their contributions and guidance.
Once they start funding their project, these students get to know the gaps or holes from the feedback from their followers where they could work to deliver a better product that would not otherwise be possible.