Basics
Advantages
Disadvantages
Factors Affecting
Risks & Challenges
100

his method involves raising small amounts of money from a large number of people, typically via the internet.

What is crowdfunding?

100

One major benefit of crowdfunding is that it provides this type of funding, allowing startups to avoid traditional bank loans.

What is alternative financing?

100

If a crowdfunding campaign fails to reach its funding goal, this is the typical outcome regarding the collected funds

What is the return of funds to backers?

100

A well-crafted and engaging campaign typically includes this type of content to attract more backers.

What is a promotional video?

100

This can happen if a campaign raises the required funds but the creator fails to deliver the promised product or service.

What is project failure?

200

Crowdfunding is categorized under this type of finance, as funds are sourced from outside the business.

What is external finance?

200

Crowdfunding can serve as a form of this, helping businesses assess the potential success of their product or service in the market.

What is market validation?

200

Running a crowdfunding campaign requires significant effort in this area to attract potential backers

What is marketing?

200

This aspect of a crowdfunding campaign, often displayed as a bar or percentage, shows how much money has been raised.

What is a funding progress indicator?

200

Some crowdfunding campaigns struggle due to a lack of this, which is needed to spread awareness and attract backers.

What is marketing?

300

In crowdfunding, individuals who contribute funds to support a project or business are commonly referred to as this.

What are backers?

300

Engaging directly with backers during a crowdfunding campaign can help build this between the business and its potential customers.

What is customer loyalty?

300

Publicly sharing a business idea on a crowdfunding platform increases the risk of this, where others may copy the concept.

What is idea theft or intellectual property infringement?

300

Campaigns that set these at a realistic level are more likely to succeed, as they balance ambition with feasibility.

What are funding goals?

300

Some crowdfunding campaigns receive funding but still fail because they lack this essential business plan component.

What is a clear financial strategy?

400

Crowdfunding campaigns are typically hosted on these online platforms that connect project creators with potential supporters.

What are crowdfunding platforms?

400

A successful crowdfunding campaign can generate this, increasing public awareness of the business or product.

What is publicity?

400

Managing a large number of backers can be challenging and may lead to increased complexity in this aspect of business operations.

What is communication?

400

Using these platforms, such as Twitter, Instagram, and Facebook, can significantly increase the reach of a crowdfunding campaign.

What are social media platforms?

400

A project might receive enough funding but still fail due to poor estimates of these two key costs.

What are production and distribution costs?

500

This term describes the collective group of individuals who provide small amounts of money to fund a new business venture.

What is the crowd?

500

Unlike traditional financing methods, crowdfunding allows businesses to raise funds without incurring this additional cost.

What is interest?

500

Crowdfunding platforms often charge fees, which can reduce the total funds received. This represents a drawback in terms of this financial aspect.

What are platform fees or costs?

500

Engaging with potential backers by responding to questions and providing updates helps build this, increasing trust and credibility.

What is community engagement?

500

Some crowdfunding platforms use an “all-or-nothing” model, meaning that if a project does not reach its goal, this happens.

What is no money is received?