The compound word “crowdfunding” comes from the English word “crowd”, meaning moltitude, and “funding”, that is financing, capitalisation… a word that subverts completely the traditional banking system to obtain loans and finance an idea or a project.
There are different forms of Crowdfunding:
1) The contributor makes a donation and receive no financial returns
2) The contributor receives interests and shares in the profits of the business
3) The contributor buys the product in the pre-selling operations and has the right to receive it before it is sold to the market (sometimes along with a free gadget) or in limited edition.
Startup.sm offers its crowdfunding services based on the third model, that is the pre-sale crowdfunding, but it also offers the chance to potential “business-angels” (venture backers) to contact directly the project’s creator in order to start possible profit-sharing private negotiations.
There are numerous crowdfunding Web sites, such as Kickstarter, however most of them are restricted only to the USA and the UK area: actually, a control over the promotor, his/her conduct, the funds, avoiding misappropration and frauds, would be necessary.
The control requires the building of local Crowdfunding projects and systems in order to allow contributors to get their product.
Our crowdfunding form is a financing solution that envisages only the product development and it is certainly the safest financing system to fund a startup that, actually, once the first products are delivered, will be totally free from any debts and undertakings.
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