Crowdfunding is an online platform wherein the crowd provides a fund to support a project or cause. It has already begun to find its place in different countries. It is mostly used for funding businesses, dream projects, donations, and investments – thus resulting it to have many types.
In addition to crowdfunding having a little yet growing base in the Philippines, donations, and fundraising events are essential when it comes to collecting money for victims of calamities. The Philippines is located in the ring of fire, thus being susceptible to typhoons and earthquakes. About donations and disasters, crowdfunding has a type called donation-based crowdfunding. Crowdfunding has different types. Learn it here.
Crowdfunding is a new term, but the idea of this word has been practiced in the past. Crowdfunding is a fundraising concept that involves the project owner and the backers online according to Berkeley (2015). It is different from the traditional way of funding as mentioned by Bannerman (2013) since the project owners are the ones who seek for funds through a website, while backers, the group people who pledged financial support to the project owner in exchange for a reward, Vergara (2015).
Crowdfunding is a new form or method of raising funds; it has already achieved widespread popularity and attention in recent years. However, from the collated literature of Lei’s (2015) study, activities of investment in crowdfunding are mostly based on the behavior of herding or gathering. Hazen’s (2012) article discussed the proposals and legislation of crowdfunding, but it led him to conclude that crowdfunding is one condition on meaningful and information-based disclosures. He then added that social networking sites are the primary factors that connect people to crowdfunding projects and causes.