Anna-Lysa Gayle, Special to wtop.com
WASHINGTON – The recession has forced many to start thinking creatively not just about how they spend their money, but also how they fund their small businesses. One of the many ways some people are doing this is through crowdfunding.
The term refers to the act of pooling money from various individuals who believe in a specific creative project or idea ranging from performing arts to technological advancements. It is mostly done online through social media platforms and combines interactive marketing and innovative ideas.
Think of it as 21st century fundraising. A whole new way to think about gathering resources for individual’s projects. Websites such as IndieGogo, Startup Addict, Peer Backers and Kickstarter are just a few popular crowdfunding websites. Many sites offer rewards to anyone who pledges funds towards a project.
The success of social media platforms such as Facebook, Twitter and Instagram has inspired many to launch similar tools. Take for example a few of the following projects that are getting lots of attention:
With the increasing popularity of crowdfunding, organizations like the National Crowdfunding Association champion creating a system for establishing a criteria for accredited websites.
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