Crowd
funding campaigns can provide a start up with a number of benefits
apart from the strict financial gains. Some of the non-financial
gains associated with crowd funding can be enumerated as profile,
marketing, audience engagement, feedback, etc. A compelling project
is instrumental in raising the producer’s profile and provides a
boost to their reputation. The project initiators can show there is
an audience and market for their project. Even if the campaign has
been unsuccessful, it would provide good market feedback.
Needless
to say, crowd funding creates a forum where project initiators can
engage with their audiences. Audience can engage in the production
process by following progress through updates from the creators and
sharing feedback via comment features on the project’s crowdfunding. Feedback from good market testing is essential for success.
Furthermore,
crowd funding allows good ideas which do not actually fit the pattern
required by the conventional financiers to break through and attract
cash. This way, the enterprises or the businesses secure seed funding
to begin its project. It also secures evidence of backing or support
from the potential customers and benefit from word-of-mouth promotion
in order to reach the goal of fundraising. Nevertheless, crowdfunding
results in increase in available venture capital.