What Is Crowd Funding?
Crowdfunding is a method of raising capital through the collective effort of friends, family, customers, and individual investors. This approach taps into the collective efforts of a large pool of individuals—primarily online via social media and crowdfunding platforms—and leverages their networks for greater reach and exposure.
What Kinds Of Crowdfunding Exists?
There are primarily 3 kinds of Crowdfunding: Donation, Reward & Financial return based.
The first (Donation) is for goodwill projects, such as buying sanitary pads for underprivileged school goers.
The second (Reward/Product) works like a pre-order for products or services that are compelling. Being part of the raise means you also get exclusive discounts. The People’s Fund primarily focuses on this sort of crowdfunding.
The third (Financial Return) is usually for shares in the company or a debt note with a set interest rate. This is usually the most exciting and rewarding of all crowdfunding, but due to legal limitations and administration, it is also the most cumbersome to execute. We are working on ways to make it easier.
How Much Does It Cost To Raise Funds Here?
It is free to upload a project on our platform. On successfully raising we take 10% of the entire amount you raised.
How Do I Know These Campaigns Are Real?
We vet each company on our platform before it becomes live to the general public. They need to be registered members of the Brownsense website where their black and/or female ownership; and integrity is checked.
Every single campaign on our platform has pitched at one of The Hook Up Dinners & won their respective nights against 4 other entrepreneurs.
Each business is also vetted for business viability and whether their raise requirement is realistic by Paybook.
Do I Only Contribute Financially To Campaigns?
NO! Crowdfunding, while it helps start-ups raise money, the bigger thing is to expose start-ups to audiences They wouldn’t usually have and turn them to start-up evangelists.
You can contribute by sharing an campaigns you like on your social media. Your circle might be able to give them the final push!