  Nowadays there are a lot of creative and innovative ideas of business
start-ups or various projects starting from a novel or music album and
finishing with some innovative goods or website that makes our life better and
easier. Unfortunately, young people often do not have enough financial support
to bring their ideas to life. The best way to solve particular problem is to
use crowdfunding platforms. Crowdfunding itself is a way of financing a project
by raising money from a crowd or simply large number of people. It is believed
that crowdfunding term appeared at the same time as crowdsourcing in 2006. Its
author is Jeff Howe. However, the phenomenon of the national funding, of
course, much older. For instance, the construction of the Statue of Liberty in
New York, for which funds were collected by the people. Currently, the national
project is financed with the use of the Internet. Author of the project in need
of funding, can post information about the project on a special website and
request sponsorship of the audience. Firstly, author selects the best
crowdfunding platform for project requirements and sign in. then he or she
creates and draws up the project. The project that is created must correspond
to one of the categories available for selection (music, film, publishing,
etc.). If you create brand new product, it is necessary to submit the
draft-working prototype or sample product. A full list of design rules for a
project can be viewed directly on the site of crowdfunding platform. While
calculating the cost of project it is necessary to take into account the cost
of realization the project, reward for your sponsors, moreover commission of
payment systems and taxes. The project is considered successfully launched
after it gets through moderation on website.

General Economics;Economics