Challenges of Running a Crowdfunding Platform

Challenges of Running a Crowdfunding Platform

In India, online crowdfunding is in its nascent stages, and the huge potential an online crowdfunding platform offers has been only recently realized. Online crowdfunding has been utilized for educational, medical, cultural, entrepreneurial, social and Non-Governmental activist purposes in India. Online crowdfunding has succeeded in sending children to school, saving the lives of patients, allowing entrepreneurs to give life to  their dream ventures and improving the lives of the socially disadvantaged. Leveraging the power of the collective to make a positive impact on the society is a rewarding deed indeed. The level of personal satisfaction that arises from being  a part of humanity and participating in collaborative work is unparalleled.

But running a crowdfunding platform also comes with its own set of unique challenges. The three most important challenges of running a crowdfunding platform are:

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  1. Since online crowdfunding is still young, awareness about crowdfunding and how it works is quite low. For a person who says ‘I need help financially’ to be able to consider crowdfunding as an option, communication needs to be belted out in such a way so as to evoke action. The scepticism that arises with any novel platform will have to addressed. The safety and reliability online crowdfunding offers must be promoted through traditional media and online media. Also, the scepticism from the side of donors about whether the right people are being helped or not needs to be taken care of.

  1. Campaigners need to be more proactive in all stages of running a fundraiser.Running a fundraiser is not the sole responsibility of a crowdfunding platform. Creating a compelling fundraiser story to promoting it on social media platforms to updating the status of the fundraiser is the responsibility of the campaigners. Crowdfunding platforms primarily provide support enabling campaigners to craft a good campaign. Promotion of the campaign story on online and offline platforms is important to gain traction and incite action.

  1. Getting driven people onboard is a huge challenge every crowdfunding platform faces. Since most crowdfunding platforms are startups, attracting the right talent is a hurdle that often needs to be jumped. Ensuring that the workforce consists of self motivated, diligent, skilled people who get excited upon the prospects of learning and contribution is a challenge every recruiter faces.

But with each of these three challenges  lie the seeds of a solution that can ensure that online crowdfunding platforms can flourish and help change the lives of millions in India. The solution involves creating awareness by sharing success stories of lives transformed by online crowdfunding and inspiring people to pool funds using crowdfunding. With more people placing their faith in crowdfunding these challenges will no longer be a source of worry for any crowdfunding platform.

Category Business

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