For a new invention or an interesting idea to become a real product, it needs funding.
A classic solution to the problem: the author of the idea is upholstered by the thresholds of business angels, people investing into projects, and tries to wake an interest in them.
A good outcome: the investor believes that by investing money in the project, he will get a big profit. He gives money. The author of the project gets a budget for implementing his idea.
Bad outcome: no business angel believed in the perspectives and potential of the project, so the idea is buried.
The difficulty is that rich investors need to be found and persuaded to listen out. Hundreds of thousands of useful, and sometimes even genius projects are dusting in oblivion only because their authors are not familiar with investors.
But there is a solution to the problem.
Crowdfunding— democracy in the field of finance
The word “crowdfunding” means “public funding” (from the English crowd – the crowd, funding – funding).
The more users believe in the project, the more money there is to implement the project. It’s hard to believe that the complex problem of financing is so easy to solve. But it turns out that a useful idea may well wake the interest in an audience that rates the idea itself, and not just the possible profit from it.
Are you still convinced that you will not receive money? Then let’s see what kind of ideas crowdfunding has already helped to implement!
6 high-profile crowdfunding results
In the case of the Tesla Museum, success can still be explained by the international authority of the great scientist. However, the support that the „Brut“ project received was a surprise even to its founders. And this proves once again: crowdfunding works not only on an equal footing with classical investment. Sometimes the new model demonstrates an indisputable excellence.