Crowdfunding, meaning of crowdfunding, source of funding, internet enabled modern day crowdfunding, crowdfunding websites , Advantages of Crowdfunding, Limitations of Crowdfunding, CSR v/s Crowdfunding, Types of Crowdfunding, Reward Crowdfunding, Debt Crowdfunding, Equity Crowdfunding, Donation Crowdfunding, Working of Crowdfunding, Process of Crowdfunding, Strategies of Crowdfunding, Future of Crowdfunding, Case Studies related to Crowdfunding

1. Dr. Parveen Nagpal
CROWD FUNDING
Dr. Parveen Kaur Nagpal

2. Dr. Parveen NagpalCROWD FUNDING
Crowdfunding is a collective effort by people who network and contribute
collectively for a cause or a business idea. This seems very similar to the traditional
concept of charity or social cooperation but unlike funding here is done with an
objective of earning some return either monetary or intangible.
According to Forbes, “Crowdfunding is the practice of funding a project or venture
by raising many small amounts of money from a large number of people, typically
via the Internet.”
“Crowdfunding involves an open call, mostly through the Internet, for the provision
of financial resources either in the form of donation or in exchange for the future
product or some form of reward to support initiatives for specific purposes.”
(Belleflamme, Lambert, and Schwienbacher,2013)

3. Dr. Parveen NagpalCROWD FUNDING
The modern day crowdfunding is associated with internet and the use of social
media for fundraising.
The crowdfunding websites charge a fee for using their platform and services to
bring money for the cause E.g. Ketto
It involves collecting small sums of money from multiple people for a specific
project, business venture or social cause.
However crowdfunding projects can range greatly in both goal and magnitude,
from small artistic projects to entrepreneurs seeking hundreds of thousands of
dollars in seed capital
It uses a web-based platform or social networking sites to solicit funds for the
fundraiser by showcasing the story to potential donors or investors.

4. Dr. Parveen Nagpal

5. Dr. Parveen NagpalADVANTAGES OF CROWDFUNDING
➢Crowdfunding can be a fast way to raise finance
➢Pitching a project or business through the online platform can be a valuable form
of marketing and result in media attention
➢Sharing ideas often result to generate feedback and expert guidance to improve
➢It is a good way to test the public’s reaction to the product/idea - if people are
keen to invest it is a positive sign that the idea could work well in the market
➢Investors can track progress and promote the brand through their networks
➢The ideas that may not appeal to conventional investors can often get financed
more easily online
➢It is a better alternative finance option to bank loans or traditional funding.

6. Dr. Parveen NagpalLIMITATIONS OF CROWDFUNDING
➢Crowdfunding will not necessarily be an easier process to go through compared
to the more traditional ways of raising finance – not all projects that apply to
crowdfunding platforms can easily get funds
➢On any chosen platform, the borrower needs to do a lot of work in building up
interest before the project launches – significant resources (money and/or time)
may be required
➢Failed projects risk damage to the reputation of business and people who have
pledged money
➢If the business idea is not protected with a patent or copyright, someone may
see it on a crowdfunding site and steal the concept

7. Dr. Parveen NagpalCSR V/S CROWDFUNDING
Corporate Social Responsibility (CSR) and crowdfunding are two concepts that have
been affected, transformed and evolved through digitalization.
For example, digitalization has enabled companies to explore new opportunities in
CSR strategies especially in relation with building viable and interactive
communication channels (e.g. social media) with stakeholders and strengthening
corporate-society citizenship relations.
Crowdfunding, on the other hand, the process of raising small amount of money
from a large number of people for a project, a cause or a business through
internet-based platforms, has leveraged technology to expand funding
opportunities to collect different fields of expertise and to increase transparency.
As an alternative source of financing, crowdfunding has become very popular over
the last years for all types of projects from charities and social causes to cultural
events and to innovative product ideas.

8. Dr. Parveen NagpalCSR V/S CROWDFUNDING
These two technology driven concepts CSR and Crowdfunding are interconnected.
Research shows that crowdfunding can be an important tool for companies in
implementing CSR strategies through various ways like increasing available funding
for CSR projects, but also - beyond funding - for raising public engagement and
awareness increasing marketing reach, building effective communication channels
with stakeholder and revealing opportunities from the crowd about idea
generation, product development and design and market testing.
Crowdfunding provides opportunities that can radically change the traditional
landscape of CSR as synergies between the two concepts arise. However, many
companies have started to integrate crowdfunding into the CSR strategy.

9. Dr. Parveen NagpalTYPES OF CROWDFUNDING
1. Reward Crowdfunding - allows investors to contribute to the business
venture in return for non–financial benefits. This type of funding is commonly
used for creative projects.
It provides funders with a non-monetary return, such as one of the first
manufactured products. In this model, entrepreneurs invite potential
customers to pre-order their product offering, sometimes at a lower-than-
usual price. Founders may also offer gifts and other non-monetary rewards to
their funders.
It usually operates as a tired system – the more an investor donates to the
fund, the greater the reward they will receive (e.g. tickets to an event, free
gifts etc.).

10. Dr. Parveen Nagpal2. Debt Crowdfunding - provides investors with the chance to fund the
project in exchange for financial interest on their investment. This finance
option may provide the investor with borrowing at a lower cost than that
offered by applying for a loan through a bank.
It is also called ‘peer-to-peer (p2p)’ lending.
The advantage of this model is that it may be easier to win support for a
campaign, as it generates huge return. This type of crowdfunding may work
best for businesses with a track-record of revenues. The process for this
model is relatively simple, but funders do risk losing their principal
investment in cases where borrowers are unable to repay them.

11. Dr. Parveen Nagpal3. Equity Crowdfunding - An equity crowdfunder will invest money in return
for shares, or a small stake in business, project or venture. This type of
crowdfunding could work best for growth-focused companies in areas where
there is potential for return.
It is a model whereby funders expect a financial return on their investment. It
is also referred as a profit-sharing model. In this model, entrepreneurs urge
people to invest money in order to receive a share of the venture’s future
earnings.
In India, equity-crowdfunding is deemed illegal while a p2p lending platform
can operate only after obtaining a Certificate of Registration from the RBI.

12. Dr. Parveen Nagpal4. Donation Crowdfunding - is designed for charities, or those who raise
money for social or charitable projects, to gather a community online and to
enable them to donate to a project.
It is the simplest and most popular type of crowdfunding. In this model,
funders donate for philanthropic purposes. These donations are usually made
to social and charitable initiatives, with funders not expecting a return on
their investment. Funders generally donate to a cause they believe in.

13. Dr. Parveen Nagpal
(Mokter Hossain, Gospel Oparaocha: Crowdfunding: Motives, Definitions, Typology & Ethical Challenges)

14. Dr. Parveen NagpalWORKING OF CROWDFUNDING (PROCESS)
Identification of a project / cause by the initiator
Selection of suitable crowdfunding platform (CFP)
Introduction of the project / cause to the crowd
(prospective investors)
Receiving contribution made by the crowd through CFP
Start the project
Earn return
Reward the crowd (Investors)

15. Dr. Parveen NagpalSTRATEGIES FOR CROWDFUNDING
➢Involving Investors
➢Support a Cause
➢Personalize
➢Communicate Effectively
➢Benefit Investors
➢Set Realistic Goals
➢Use all Digital Marketing Channels
➢Use the Right Platform

16. Dr. Parveen NagpalFUTURE OF CROWDFUNDING
➢Crowdfunding in India is still in its infancy. Being a new concept, the Indian
population still has not widely accepted online crowdfunding.
➢For ages, donations have been taken to build temples, cash covers are taken
at marriages, and religious festivals are celebrated through contributions.
But fund raising through contributions from public through internet based
platforms is relatively an innovative concept.
➢Crowdfunding is not a fundraising method that replaces all the traditional
funding techniques but it is simply a new method of obtaining funding and
should be evaluated in light of other alternatives that are available to the
investors.
➢India’s vast population means that India potentially has a huge donor base.
➢Indians also have tight knit families and communities which results in a wide
social network, beneficial in viral campaigning.

17. Dr. Parveen NagpalFUTURE OF CROWDFUNDING
➢As the Indian youth faces the constant threat of unemployment, many of
them may look upon entrepreneurship as viable career option; as word of
mouth spreads, more awareness and interest in crowdfunding can be
expected.
➢Despite initial challenges, the future of crowdfunding in India is bright
because of the internet penetration and success of e-commerce. This will
help CFPs to float equity based and lending based campaigns.
➢As per Statista, global crowdfunding market size by 2025 can be $28.8
billion. That estimate may change in post Covid-19 situation but
nevertheless the potential of this form of alternative lending can’t be
undermined.

18. Dr. Parveen Nagpal
Cases - Crowdfunding

19. Dr. Parveen NagpalBOY SHORT OF COLLEGE FEE SEEKS HELP, THE INTERNET PITCHES IN
(INDIAN EXPRESS - 8TH DECEMBER 2016 10:45 PM)
BENGALURU: Several startups, artistes and public movements banked on
crowdfunding this year. The world did seem like a generous place after all.
Nadeem Akram too had a taste of this warm generosity, at a time when he was
struggling to fund his education.
Running short on funds, the second year Masters of Computer Applications at
New Horizon college student was still clueless on how he could foot in Rs.
35,000 of his tuition fee at the institute earlier this month. This is when he was
advised by his friends to take to crowdfunding.
He created a page on the crowdfunding platform Milaap on December 19 and
was flooded with donors. Within a day, Nadeem met his target money and paid
off his tuition fee.

20. Dr. Parveen NagpalBOY SHORT OF COLLEGE FEE SEEKS HELP, THE INTERNET PITCHES IN
(INDIAN EXPRESS - 8TH DECEMBER 2016 10:45 PM)
“I was very excited and moved by the support people were giving me. I don’t
know any of my donors personally. Their contribution has helped me today,”
Nadeem says. Other than Indians, several Americans too pitched in funds, he
adds.
“Someone made a donation of $400. I don’t know the name of the person,
but I am very thankful to him or her,” he adds.

21. Dr. Parveen NagpalPHILANTHROPY DURING COVID-19 CRISIS: ROLE OF CROWDFUNDING PLATFORMS
(ETGOVERNMENT - MAY 23, 2020, 12:58 IST)
The PM Cares Fund, set up by the Prime Minister of India for this purpose, was an
important step taken by the Government of India to channelize philanthropic
contributions towards the fight against corona.
There was significant media attention about the individuals who contributed to the
country's fight against corona. Some of them were applauded for their generous
contribution while others were trolled for their apathy towards the cause or even
for the amount of contribution which was seen as less as compared to their
stature.
Indeed, this was a reflection of the social pressure to philanthropy. The reliance on
philanthropy is neither specific to our country nor to modern times. This is evident
as several nations have created mechanisms to channelize the funding towards the
cause and also as stars from various walks of life, including movie industry,
business, and sportspersons have provided for financial assistance to the Govt.

22. Dr. Parveen NagpalPHILANTHROPY DURING COVID-19 CRISIS: ROLE OF CROWDFUNDING PLATFORMS
(ETGOVERNMENT - MAY 23, 2020, 12:58 IST)
People involve themselves in philanthropic activities for different reasons.
Some do it because they feel happy by assisting the needy, which is the case
of pure altruism. Some do it because they think it enhances their social
status. Others do it to follow the actions or directions of the influential
individuals in their social group or their icons, such as religious gurus, sports
stars, or film actors.
Hence, we see a lot of influential individuals not only contribute but they do
it in front of the media, as it can inspire others also to do it. Sometimes
people donate because of social pressures, especially if the donations are
highlighted publicly.

23. Dr. Parveen NagpalTHRIVE WITH THE CROWD
(MEDIAWIRE - MAY 23, 2020, 12:58 IST)
Kenny Basumatary has started a new campaign on Wishberry to fund his
latest film Local Utpaat. This is the Assamese filmmaker’s fourth film as a
director and like one of his previous films -- Local Kung-Fu 2 – is being funded
through crowdfunding. “My first film was made with a budget of Rs 90,000
but for my second film I needed more money to give it a wider release. One
of my friends told me about crowdfunding and I met the team from
Wishberry. The campaign helped me raise Rs 8.9 lakh and plan my film on a
bigger scale,” he said.

24. Dr. Parveen NagpalCROWDFUNDING PLATFORMS TO THE RESCUE FOR VULNERABLE POPULACE DURING
COVID – 19 (ETBUREAU- APRIL 17, 2020, 08:40 IST)
MUMBAI: Online crowdfunding platforms have emerged as a source of financial
support for people in need in the wake of restrictions due to the Covid-19
pandemic.
To be sure, online funding campaigns have been helping stranded migrants and
daily wage labourers get access to essentials and community kitchens, but now
the crowdfunding platforms are coming to the aid of transgender communities,
circus artistes, Uber drivers, Swiggy delivery personnel, rural artisans, dancers
and freelance workers.
The mobilisation of funds across these platforms is helping such vulnerable
people.
The campaigns span across necessities like food, medical needs, , shelter and
also income protection insurance in case the people get infected by the virus.

25. Dr. Parveen NagpalACTOR ANUPAM SHYAM IN ICU, FAMILY SEEKS FINANCIAL HELP (THE INDIAN EXPRESS
- JULY 28, 2020 6:53:19 PM)
MUMBAI: Veteran film and television actor Anupam Shyam has been admitted
to the ICU in Mumbai’s Lifeline Medicare Hospital after being diagnosed with
kidney infection.
The 62-year-old actor was shifted to the ICU from a dialysis centre on Monday
after he collapsed, his younger brother Anurag told indianexpress.com.
Anupam Shyam’s family has requested for financial help from the Hindi film
industry.
“There’s a money crisis right now, so we are talking to people. We have written
to Being Human website. We have informed some of Anupam’s friends about his
condition. Manoj Bajpayee ji had called and said that he will look into it,” Anurag
said.

26. Dr. Parveen NagpalFROM BUILDING TOILETS TO SAVING TREES, BENGALURU DOES IT
THROUGH CROWDFUNDING (ETBUREAU- JUN 04, 2019, 01:10 PM IST)
BENGALURU: On a recent visit to the Government Higher Kannada Primary School
in Byrasandra, Jayanagar III Block, two senior citizens were shocked by the bad
condition of the single toilet. They noticed the school had just one toilet, and girls
and boys had to take turns to use it. One of the girls would stand guard at the
entrance while others used it. Instead of flowing water, there was a tank to store
water.
“We thought we shouldn’t just keep quiet. So we have started crowdfunding to
build more and better toilets. We have prepared an appeal and sent it to some of
our contacts,” said Padmanabha Arkalgud, 82, a retired senior vice-president at
ITC. Arkalgud and his friend S. Venkatasubba Rao, a retired general manager at RBI,
intend to make five blocks in the existing toilet and provide flowing water. They
want to raise Rs 2.5 lakh and finish the work as soon as possible as the school
reopens.

27. Dr. Parveen Nagpal
FROM BUILDING TOILETS TO SAVING TREES, BENGALURU DOES IT
THROUGH CROWDFUNDING (ETBUREAU- JUN 04, 2019, 01:10 PM IST)
Like this duo, many Bengalureans are taking the crowdfunding route to raise
money for social causes. To raise larger amounts, platforms are available that serve
as payment gateways and lend more credibility to the causes.
In an instance of crowdfunding being used for citizen activism, members of the
citizen group Voice of Sarjapura raised Rs 1 lakh to translocate a large Banyan tree
that was to be chopped. Deepanjali Naik, a member of the group, said this was the
second time crowdfunding had been done successfully to translocate trees.

28. Dr. Parveen Nagpal
Thank You
www.linkedin.com/in/dr-parveen-kaur-nagpal-82965b15