Is crowdfunding legal in the Philippines?
Are you looking for an easy way to raise funds for your business? Do you have a great product idea but don’t know where to start? Then crowdfunding might be what you need.
The first crowdsourcing platform was launched by Jeff Howe back in 2008 and is now known as Kickstarter. But what is crowdfunding?
What is Crowdfunding?
Crowdfunding is a new way to fund projects that involves raising money through an online platform. It allows anyone to contribute small amounts of money to support a cause or business idea. It gained popularity due to the rise of social media. It lets networking and advocating for your project to a big audience easy.
What are the benefits of crowdfunding?
There are many reasons why people choose to crowdfund their projects. Some need money to pay off debts, while others want to help a loved one. Here are a few that will make you consider crowdfunding:
✔ Raising money from many small investors instead of one large investor. Getting multiple sources to fund a particular project is a good thing. Burning capital through just one pocket might be risky if it runs out of money. With crowdfunding, you get multiple people to support you anywhere you want to go. On that note, we give this next benefit.
✔ Great way to build relationships with potential customers. The multiple supporters of your project will be your first customers. If they believe your business or project idea the first time they hear it, they will surely try it for themselves and even advocate for you.
✔ Simple and straightforward. Crowdfunding is a relatively new concept. In the business world, we are used to doing things professionally and documented. Crowdfunding may seem like a daunting method to finance your business at first. With some research and planning, crowdfunding may surprise you with how easy it is to use. We have busted some crowdfunding myths here.
✔ Fund for anything. Yes, anything under the sun. Aside from raising business capital, you can also fundraise for your medical bills, school tuition, or even your dream vacation.
Now you may stop here and ask, “but is it legal if I’m raising capital for a business?”
Is crowdfunding legal in the Philippines?
The Philippines welcomed innovation advancement in the financial environment back in 2019. In that year, the Securities and Exchange Commission (SEC) approved the rules for crowdfunding. The approval provides easy financial access to small to medium enterprises (SMEs). It also ensures fairness within the platform for the protection of the financers. Here are some of what you need to know about those rules:
✔ Crowdfund through registered online platforms only. Research to make sure you are crowdfunding on a legitimate platform. The platforms must submit the requirements mandated by SEC. Crowdfunding through these platforms will protect you from fraudulent risks and other liabilities. Start reading here for the top crowdfunding platforms in the Philippines.
✔ Information transparency. Check how the crowdfunding platform is transparent with how they operate since it involves finances. Relevant information on crowdfunding activities, fees, terms of use, refund process, and privacy policy should be disclosed.
✔ Customer service. If anything goes wrong, you should be able to communicate easily with the crowdfunding platform provider. It could be through a phone call, email communication, or social media pages.
With these few points, we can say that you’re safe and good to go in using crowdfunding for your business in the Philippines!
Crowdfunding in Airfunding
Now that you have a strong conviction in beginning your business journey through crowdfunding, use Airfunding to jumpstart your financial goal. Airfunding has become popular in the Philippines and the whole world. It is a donation-based crowdfunding platform that lets you tell your story and receive funds without returning any of them.
✔ Worldwide community. More than 783,000 inventors, entrepreneurs, supporters, and the general public from all over the world joined the Airfunding community to make a change in their or others’ lives. When the COVID-19 pandemic started in 2020, Airfunding created a space for those looking for financial support.
✔ Crowdfunding tips. Get to learn different tricks to make your fundraising activity successful with tips prepared by Airfunding. Our community of project owners will also help you with some peer tips to achieve your financial goals.
✔ Yes to all of the above. The things we shared with you above in this article are things you will find in Airfunding. 100% guaranteed! Here’s a success story from Ben Santos of the Philippines that will inspire you. One month of fundraising in Airfunding helped him raise funds amounting to $2,378 (₱132,835.08) for his mom’s medical bills.
So if you’re ready to get started fundraising, register in Airfunding today, and we will help you raise the money you need.
Comments are closed.