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Crowdfunding concept made simple to SMEs.
Crowdfunding concept made simple to SMEs.
Start-ups have been drilled on crowd funding, a new financing option. This happened recently at a National Crowdfunding Workshop organized by the Minister of Finance, Louis Paul Motaze, in the presence of over five government ministers in Douala.
Crowdfunding is a way for people, businesses and charities to raise funds using their online contacts. It is essentially the opposite of the mainstream approach to business finance. Conventionally, a business idea is established and the idea is shopped to a limited pool or potential funding individuals or organisations. This fundraising approach has often been described as a funnel, with the initiator at one end and the investor at another.
The two are linked up by the social media which serves as the funnel linking the two. WhatsApp, Facebook, Twitter and other social media platforms are essential tools for this form of project funding. Crowd funding has also been referred to as participatory funding as it allows several persons to fund a single project.
Culled from Cameroon Insider