There are two primary types of crowdfunding; the first incorporates the use of donations while the second one has investment mechanisms working behind it. However, two of the sites, Indiegogo and Kickstarter, are the most popular crowdfunding sites which are working on the donations. They were founded in 2007 and 2009 respectively, and have served a number of people and helped them to get business loans for starting their businesses at large scale. Apart from that people can also go for startup loans/financing related helps from the very same organizations.
Both of these sites offer endless opportunities for their contributors to drive revenue using online donation made using pre-purchased articles of daily use. One thing, which a person should have to bear in mind, is that, both of these two sites does not allow its contributors or donators to turn into a stakeholder or even an investor. On both the sites, the company allows the project creators to have ample control over their plan and help them deploy the infrastructure just in no time.
The revolutionary idea for backing up using small business loan/financing was put forward after the Jobs Act was passed. The action proves sense of responsibility of government for enhancing the lifestyle of each and every American. The JOBS act has provided utmost outlook to look into the matter from a different perspective, and this has greatly helped the country to adopt the upcoming change in steadily and vibrant manner. Among the acts, Title II has also been passed by the SEC for enhancing the level of cooperation of companies to encourage participation in essential solicitation. This allows the accredited investors another open market to invest and get the best out of it.
Right from the start of crowdfunding condition, the Kickstarter has surely proved itself the catalyst behind the innovation of local as well as countrywide economy. It has initiated a total of 46,000 fruitful campaigns for the development of policies. The reason behind the massive success of Kickstarter is the policy of strict qualification and the “all-or-nothing” funding strategy. The platform of Kickstarter offers project creators to fit themselves in one of the broad categories of sport, dance, comic, design, technology and the list goes on and on. However, there is one impedance in Kickstarter which is the eligibility of United States, United Kingdom and Canada for making donations. As long as the campaigns are for the betterment of the people, the company should have to consider donations from all across the world.
On the other hand, Indiegogo offers a great deal of flexibility and allows the crowdfunding for even everything. They even include trips, projects, charities and even personal wishes. The comparison can also be made on the basis of internet related stats. The Kickstarter has around $5,000 crowdfunding campaigns on an average basis having a failure rate of 56%. On the other hand, its counterpart, offers $3,700 average campaigns having failure rate of around 80%. The figure tells the difference and the public perception too. However, people are at full liberty to choose the one which suits them the most and avail the very services.