01
Mar

Crowdfunding

Crowdfunding gives initiators of social, cultural and business ventures the opportunity to raise funds for their implementation. Financing are members of virtual communities, friends, family and all those who want to support micropayments with micropayments. Many small payments make up a large pool of funds that allow you to fulfill your dreams, develop your business or organize attractive events.

The form of financing various types of projects by the community, which is or will be organized around these projects. The venture is financed in this case by a large number of small, one-off payments made by persons interested in the project. The spread of the Internet allows for easy information about projects and the creation of communities around them, which contributed to the development of crowdfunding. This term is usually used in relation to collections carried out on Internet platforms created for this purpose, less often also through the use of social websites or blogs.

Crowdfunding is a type of collection and allocation of capital transferred for the development of a specific undertaking in return for a specific returnable service that involves a wide range of capital donors, characterized by the use of ICT and a lower barrier to entry and better transaction conditions than publicly available on the market.

The Polish Society of Crowdfunding operates in Poland, which promotes the term “crowdfunding” as a Polish name for the phenomenon of crowdfunding, and whose aim is to shape the legal and economic environment so as to enable universal access to crowdfunding as a source of capital in Poland.

The crowdfunding mechanism provides for the remuneration of the project promoter of people paying money for the project in a pre-determined form. One of the forms of rewarding the project financing community is the future participation in profits from the project, or participation (co-ownership) in the project itself. This type of crowdfunding, also known as share crowdfunding, is increasingly used to finance new business projects, so-called start-ups, and is in this case a form of investment. The second form of the reward is offering the payer a product, the production of which will be possible thanks to the collected collection, so it is a pre-sale form. This mechanism is successfully used by musicians, thus obtaining funds to pay for the recording studio and the release of a new album. The project provider does not have to be limited to the aforementioned forms of remuneration for members of the project financing community. It may take the form of material prizes or provide services to contributors or other forms of remuneration.

The project can be any business, cultural, scientific or social undertaking. In business, it will be both setting up a new company and developing a new business within an existing one, executing a specific order, renewing a machine park or introducing a new product or service to the market. Projects financed by communities may also include film and music productions, scientific research, creation of software or websites, organization of mass events, construction of public facilities or even election campaigns.

 

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