2 minutes to learn about crowdfunding platforms in South East Asia
Before crowdfunding platforms appear
If you think back before, there are times when a school held an activity to raise funds for helping the disaster victims, helping their unfortunate student or want to make a school event. They traditionally collect the money door to door from class to class.
Since the internet and smartphone appeared, we know the problems more globally. Almost every day, there are many disasters that are occurring and many unfortunate persons in this world are suffering. As a human, we will feel pity and willing to help them even though we don’t know personally the person and they live far away. Crowdfunding platforms is one of the easiest ways to connect the people who are willing to help and who needed help.
What is Crowdfunding platform?
Recently the word “crowdfunding” is familiar in our ears and often appeared in several sites, but what is the exact definition of crowdfunding?
In a simple way, crowdfunding is a fundraising activity to collecting money from many people (crowd) globally for a certain project. Crowdfunding platforms usually have a time period and setting a target until the project finished. Funds raising based on crowdfunding systems are usually only done on an online platform.
They are 3 essential components that you need to know in a crowdfunding platform:
- Project owner is a person who opens a funding project
- Supporter is the person who supports the project owner financially, and
- Crowdfunding platform itself, which provide the platform where the project owner can receive support from the supporter, connecting them both together
Types of Crowdfunding platforms
They are several types of crowdfunding platforms that often being used, such as donation-based crowdfunding, lending based crowdfunding, business based crowdfunding or even, reward-based crowdfunding.
Crowdfunding already known worldwide, they are many crowdfunding platforms too in several countries in South East Asia. For example they are:
- Kickstarter is one of the popular crowdfunding platforms from America that mostly have the project for innovations or ideas. Kickstarter helps artists, musicians, filmmakers, designers, and other creators find the resources and support they need to make their ideas a reality.
- Came from Malaysia, Crowdo is an Equity-based crowdfunding platform. This platform usually is used for the person who wants to invest their money.
- Sinwattana platform is a crowdfunding site from Thailand, this site accommodates all types of crowdfunding based on donations, loans and equity. However, if the target fund does not meet its target, the money will not be sent to the project owner.
- A Philippines crowdfunding site that focuses on creative and artistic projects.
- Kitabisa is a crowdfunding platform from Indonesia. Kitabisa very often being used in Indonesia and most of the project owner has come from Indonesia. The project itself is various but focused on donation type crowdfunding.
- Airfunding is another crowdfunding platform from Asia. Airfunding is a type of crowdfunding platform based on donation type. The one that makes different is the project owners are from any country. Besides that, the money from the project owner gathered will be transferred even though they didn’t meet the target.
How to make it work?
To convincing everyone who joins a fundraiser, the creator must provide a detailed description of the project to be established that contains objectives, benefits, and the allocation of funds collected from fundraising. For that reason, it will make the supporter understand the project more.
Southeast Asia country mostly categorized as a developing country. Various issues that cause from economic reason came from a developing country such as want to start a business but have limited income, a health problem that can’t pay the hospital bill etc. But, we can’t deny that in a developing country, technological developments bring a better and faster system. Maximizing the use of technology has become one of the most appropriate solutions for it. Therefore, crowdfunding is one solution to raising funds for those issues.
Why don’t we start help other using crowdfunding platform?