If you follow tech news then it is highly unlikely that you haven’t heard of Kickstarter. It has been frequently called one of the hottest startups around and rightfully so. Its innovative model helps raise funds for businesses who are unlikely to attract it through the conventional means like angel or VC funding.
The way it works is that you put your project on the site and provide information about it, such as what it is, when it is likely to be completed, what you need, etc. You then decide a funding a goal and ask for contributions. People then start donating and you receive the money only if the goal is reached. Otherwise no one is charged.
The process also helps in building a community around your product. You are expected to announce rewards in the form of free licenses of the product or similar such rewards for people who pledge their money.
- Crowd funding model for creative startups.
- Create a community around your business