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History of Crowdfunding and How Does Crowdfunding Work?

Crowdfunding is for those who do. Those, who have an idea, a project or a cause and want to fulfill it. 
Let's say you're starting a business or you have an amazing startup idea in your mind, but before starting something like this, you require capital. Capital to turn your idea into a reality, capital to purchase the required items, and investment to hire a team and proceed further. But, what if, you're short on capital?
You'll think of taking a loan from the bank to start your business. Banks have lengthy procedures to complete before giving out loans and it's often tedious to get an approval for your loan. 

In such cases, crowdfunding comes really handy. Crowdfunding is the process of giving wings to your cause. It works on the principle of raising money from many individuals to support your project. Startups always look out for VCs or Angels to get funding, these VCs are often unapproachable, in that case, you can try crowdfunding. Popular startup accelerator NASSCOM has conducted an offline funding campaign in Kolkata and it was a huge success!

Want to venture into the crux of the crowdfunding world?
In India, the rules related to this type of funding are moderated by SEBI(Securities and Exchange Board of India) and it's responsible for regulating norms related to it. In India, there are certain rules which differ from the United States. For example, equity-based crowdfunding is considered illegal in India.

History Of Crowdfunding: 

The history of crowdfunding dates back to several centuries. Authors would throw events to appeal to people and evaluate their ideas. The books would be published only if many people showed their interest not just as critics but also as investors.
In 1885, The U.S government lacked funds to build a base for a statue, but a newspaper campaign attracted as many as 160,000 people who contributed a nominal amount. Later, that statue came to be known as the Statue of Liberty. 

Crowdfunding went online and became famous first among artists and musicians. In 1997 a British rock band made headlines when they raised US$60,000 when they launched their first online crowdfunding campaign for fans. 

In the early 2000s, many crowdfunding platforms started taking over like Indiegogo, Kickstarter and much more. 
When it comes to India, Milaap is one such platform for crowdfunding. If you're having any personal cause or you're lacking funds to pay your medical bills, education fees, or funding community projects, then Milaap is for you. We’ve raised more than Rs. 170 Crores and have over 2M monthly visitors. 

There are many different types of crowdfunding, debt-based, equity-based crowdfunding, and reward-based crowdfunding. It has also got many different applications to it. You can approach this financing option for personal causes, social causes, 

Getting started with crowdfunding:

To get started with crowdfunding, you have to choose a good crowdfunding platform like Milaap and start your campaign. You have to be descriptive about your cause/project, upload pictures, set an achievable goal and publish it on the site. Share the link to your campaign with friends, family, and acquaintances on social media to start funding. People will open your page, read about your cause and if your story touches them, they will contribute towards your goal.
It's free to create and share your crowdfunding campaign on Milaap. The only charge is a 5% platform fee. Please see Pricing & Fees for more info.