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  1. Crowdfunding can be categorized into 4 types. They are Donation crowdfunding, Reward crowdfunding (non-equity based crowdfunding), Debt crowdfunding and investment based crowdfunding (Equity crowdfunding). 1. Donation crowdfunding: In this type of crowdfunding, people donate for social cause or a spRead more

    Crowdfunding can be categorized into 4 types. They are Donation crowdfunding, Reward crowdfunding (non-equity based crowdfunding), Debt crowdfunding and investment based crowdfunding (Equity crowdfunding).
    1. Donation crowdfunding: In this type of crowdfunding, people donate for social cause or a specific cause without expectations of getting anything in return.
    2. Reward crowdfunding: Rewards such as coupons, t-shirts, movie tickets are given to investors in return for the money invested by them.
    3. Debt crowdfunding: Here inestors expect the business to return money with interest. It is just like borrowing money from bank.
    4. Investment based crowdfunding: Investors invest money in return for stakes/ shares in business.

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  1. Hi Prashanth Crowdfunding is a way of raising money. It is an approach used to raise small amounts of money from large number of people to finance a project, cause or business. It is generally done via the internet. To raise money using this approach, you can use websites and social networking sitesRead more

    Hi Prashanth
    Crowdfunding is a way of raising money. It is an approach used to raise small amounts of money from large number of people to finance a project, cause or business. It is generally done via the internet.
    To raise money using this approach, you can use websites and social networking sites to attract investors by presenting them with a pitch on the platform.
    The investors can then decide if they want to invest in your project, cause or business or not.
    For in depth understanding of crowdfunding, you can read article on this link: https://www.feedough.com/what-is-crowdfunding-definition-websites-types-benefits/

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  1. Some of the disadvantages of crowdfunding are as listed below: 1. The crowdfunding websites where you run your campaign allow you to utilize the capital only if your target capital is achieved. If your target capital is not reached even by a penny you won't get the capital. 2. Failure of a campaignRead more

    Some of the disadvantages of crowdfunding are as listed below:
    1. The crowdfunding websites where you run your campaign allow you to utilize the capital only if your target capital is achieved. If your target capital is not reached even by a penny you won’t get the capital.
    2. Failure of a campaign can affect your image negatively
    3. Crowdfunding cannot be opted to raise large investments.
    4. Crowdfunding is less appealing for Business to Business products.

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  1. As crowdfunding is becoming popular currently for raising money in businesses. Here are few websites which gives some promising results: Best Overall site is Kickstarter and next Indiegogo, while the best for non profit crowdfunding is causes. There are a few more which you can check out for instancRead more

    As crowdfunding is becoming popular currently for raising money in businesses. Here are few websites which gives some promising results:
    Best Overall site is Kickstarter and next Indiegogo, while the best for non profit crowdfunding is causes. There are a few more which you can check out for instance if you are a creator then go to Patreon.
    If you are doing personal fundraising then go to GoFundMe.
    You can also check out CircleUp and LendingClub.

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  1. Yes Aakash, it does really work. Now the question is, does it always work? well a no for that. Crowdfunding is becoming a popular way to raise money and more than a billion dollar has already been raised through it. Not every crowdfunding is successful but the good news: Many are! Here’s some statisRead more

    Yes Aakash, it does really work. Now the question is, does it always work? well a no for that.
    Crowdfunding is becoming a popular way to raise money and more than a billion dollar has already been raised through it.
    Not every crowdfunding is successful but the good news: Many are! Here’s some statistics to show that how much crowdfunding really works.
    The average success rate of a crowdfunding campaign is 50%.
    78% of crowdfunding campaigns exceed their goal.
    You can also check out more info on this link-
    https://www.startups.com/library/expert-advice/key-crowdfunding-statistics

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  1. Hey Rayon, as the rule says that what goes around comes around so obviously you get a few monetary and non monetary benefits of being a crowdfunder. These benefits depend upon what kind of crowdfunding you are investing in. If its investment-based crowdfunding then you normally invest in a businessRead more

    Hey Rayon, as the rule says that what goes around comes around so obviously you get a few monetary and non monetary benefits of being a crowdfunder. These benefits depend upon what kind of crowdfunding you are investing in.
    If its investment-based crowdfunding then you normally invest in a business and receive a stake in return (normally shares).
    If its a Loan-based crowdfunding then you lend money to individuals or companies in return for a set interest rate.
    If its a donation-based crowdfunding then you donate to a person or a charity.
    And lastly if its a reward-based crowdfunding then you give money in return for a reward linked to the project or cause you’re supporting.

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  1. Yes, you do need to pay taxes on crowdfunding. Its just like how it works for any other income, since its a part of your income you do need to pay taxes for it. There are also a certain rules regarding it, if you are using the accrual basis, you must report income when you earn it, at the time it isRead more

    Yes, you do need to pay taxes on crowdfunding. Its just like how it works for any other income, since its a part of your income you do need to pay taxes for it. There are also a certain rules regarding it, if you are using the accrual basis, you must report income when you earn it, at the time it is due to you or when you receive it, whichever comes first. Also, using the accrual method does not allow you to postpone the recognition of income you have received.
    Lastly I don’t think this income should be argued to be a gift , and if you still wanna argue on it then it should be a convincing case.

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  1. To get investors to invest in your business idea you need to first be prepared with a pitch deck. You can use this pitch deck to attract investors. Following are some of the ways in which you can get investors for your business idea: 1. Online Fundraising Platforms: You can start a crowdfunding campRead more

    To get investors to invest in your business idea you need to first be prepared with a pitch deck. You can use this pitch deck to attract investors.
    Following are some of the ways in which you can get investors for your business idea:
    1. Online Fundraising Platforms: You can start a crowdfunding campaign on these websites to raise funds for your business venture. You should be realistic in gauging the amount of donation that you will be able to raise through these crowdfunding websites because you won’t get the money if you fall short by even a penny from your said target amount.
    2. Events: Attending business conferences or big business events becomes a very important factor in attracting investors as these events give you visibility and you get an opportunity to expand your network.
    3. Social media: Social media is a great platform to increase visibility. You can promote your business idea on social media or start a social media campaign to attract investment.
    4. Email: Contact investors through email. You can send them your pitch deck to attract them to your business idea.
    5. Accelerator programs: Apply to accelerator programs. If you get selected, you will have their support in your business activities
    Here is a link to help you with this question: https://www.forbes.com/sites/alejandrocremades/2018/09/02/7-ways-for-entrepreneurs-to-find-investors-and-raise-millions/#48de91e50231

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  1. For a startup, a startup accelerator can accelerate the growth. Startup accelerators support early-stage, growth-driven companies through education, mentoring, and financing. Startups enter accelerators for a fixed-period of time, as a part of a group of companies. The accelerator creates a processRead more

    For a startup, a startup accelerator can accelerate the growth. Startup accelerators support early-stage, growth-driven companies through education, mentoring, and financing. Startups enter accelerators for a fixed-period of time, as a part of a group of companies. The accelerator creates a process of intense, rapid, and immersive education aimed at accelerating the life cycle of young innovative companies, compressing years’ worth of learning-by-doing into just a few months.
    The accelerators can be described as fixed-term, cohort-based, and mentorship-driven. Accelerators may share with these others the goal of cultivating early-stage startups, but it is clear that they are different, with distinctly different business models and incentive structures.

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