Crowdfunding facilitates the raising of capital for a variety of purposes, using numerous variations of the model. The crowdfunding industry is experiencing rapid growth and innovation as people turn to the power of the crowd to fund their dreams. There are basically four different types of crowdfunding :-
Within this four types of category : Rewards-based crowdfunding provides project supporters with incentives to turn great ideas into reality. Rewards-based crowdfunding involves individuals contributing to your business in exchange for a “reward,” typically a form of the product or service your company offers. Even though this method offers backers a reward, it’s still generally considered a subset of donation-based crowdfunding since there is no financial or equity return.
Kickstarter is the largest rewards-based crowdfunding platform. According to the site, by the end of 2013 :-
– People pledged $928 million to projects on Kickstarter
– 54,233 projects have been funded successfully
– 5.4 million people have backed projects
– 1.58 million people have backed more than 1 project
– 12.8 million total pledges have been made
over $700 million would trade hands on rewards-based crowdfunding platforms.
Compound Annual Growth Rate (CAGR) of Reward Based Crowdfunding :-
The reward based category is the largest crowdfunding in term of the number of CFPs, and grew at the higher rate of 79% CAGR.
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