What is Crowd Funding?
Collective One is launching next week, via a crowd funding campaign! While crowd funding is becoming more and more well-known, it is still a new concept to many. So what exactly is it??
Crowd funding is a way of raising funds by asking a large number of people to “donate” a small amount of money to support an organisation, company, venture, cause, project or person. This is usually done via the internet, and in return for a variety of rewards.
This crowd funding concept is usually fueled by 3 different parties:
- The person or organisation proposing the project (in our case – Collective One)
- The community of people/individuals supporting the project – generally the public
- The platform bringing the other 2 parties together (in our case – Pozible)
Why is Collective One choosing to use crowd funding as a way of establishing itself? Collective One will be donating the majority of its profits to a different charity each month – this is its sole purpose, to support the amazing work that non-profits so tirelessly do. With bank loans (the usual way to come up with capital) comes interest charges and debt, which all takes away from the profit we can donate. Crowd funding gives us a way to spread the word about what we’re trying to achieve, as well as bringing together a community of supporters who want to see change in the world. It also gives us the opportunity to engage with that community in the early stages, to get feedback on our products and concept, so that we can ensure that we take off with a bang!
This is why YOU are so important! You aren’t just supporting the establishment of this social business – you are supporting our daily, monthly, yearly, ongoing commitment to make a difference where it matters. We are aiming to donate $1 million a year over the next 5 years to charities around the world. Imagine the difference you and I could make with $1 million! So keep an eye out for our crowd funding campaign going live next week, and help us get this concept off the ground!