Nasamon Consultants :Crowd Funding

CROWDFUNDING MODEL OPTIONS

To date there are three fundamental crowdfunding business models which prevail, namely Reward, Equity and Loan. The terms “Alternative finance”, “Peer to Peer Lending” and “crowd investing” are often used to refer to the Equity and Loan models, indicating that the investor expects or, at least, hopes to receive a financial return on its money.

Business Revenue Model of crowdfunding platforms

The business model of crowdfunding platforms typically involves charging a fee or commission on the funds raised by the campaign creators.

There are generally two main types of fees that crowdfunding platforms charge:

In addition to these fees, some crowdfunding platforms may also offer premium services to campaign creators for an additional fee. These services may include marketing and promotion, campaign management tools, and access to a network of investors or backers.

Overall, the crowdfunding platform business model relies on providing a convenient and accessible platform for campaign creators to raise funds, while also generating revenue through fees and additional services.

Issues those are really threatening for above crowdfunding platform models

Financial Regulatory Compliance

Aml

Legal Exposure, Terms And Conditions (“t&c”)

Jurisdiction For License

Business Structure Vs Legal Exposure

Taxation

Crowdfunding Platform Usage Rights, Intellectual Property Rights (“IPR”) and Branding.

How To start Crowdfunding Business in India from scratch?

To start a crowdfunding business from scratch, there are several key steps involve. Here are the fundamental steps to consider:

Determine the type of crowdfunding platform you want to create. Will it be reward-based, equity-based, donation-based, or a combination? Clarify your revenue model and fee structure.

Understand the legal and regulatory requirements to start a crowdfunding business in your jurisdiction, such as licenses, compliance obligations, and consumer protection laws. Consult with legal experts to ensure compliance.

Outline your vision, goals, target market, marketing strategy, and financial projections. Identify your unique selling proposition and competitive advantage in the crowdfunding market.

To start a crowdfunding business, assemble a team with the necessary skills and expertise, such as technology, marketing, finance, and operations. Each team member should align with your business goals and contribute to the platform's success.

Develop or partner with a reliable technology provider to build a robust and user-friendly crowdfunding platform. While starting a crowdfunding platform, ensure the platform supports essential features like campaign creation, payment processing, and investor communication.

To start a crowdfunding platform, you need to collaborate with payment gateways, legal advisors, and financial institutions to ensure smooth and secure transactions. Form alliances with influential industry stakeholders to enhance your platform's credibility.

Draft comprehensive terms and conditions, privacy policies, and user guidelines. Address important aspects such as intellectual property rights, refunds, and dispute resolution mechanisms.

Develop a compelling brand identity, website, and marketing strategy to attract campaign creators and investors. Utilize digital marketing techniques, social media, content marketing, and partnerships to raise awareness and drive user engagement.

Set up efficient customer support channels to address user queries and concerns promptly. Actively collect feedback and iterate on your platform to enhance user experience and meet their evolving needs.

Continuously monitor your platform's performance, user metrics, and financial health. Identify areas for improvement and leverage user feedback to enhance the platform's functionality and usability