Answers on Crowdfunding Questions
Crowdfunding sites are becoming more and more popular nowadays. For the beginners, it may seem a little complicated to become a pro in this field. That’s why they raise a lot of crowdfunding questions, which are similar on different websites. We have gathered 5 most popular questions and have found answers for them. That’s what we’ve figured out.
- Can I hold a project on different crowdfunding websites at the same time?
Yes, you can. However, by doing that you can damage your campaign. You lose time, efforts and split contributors’ attention. In such a way, you decline your chances to approach the financial goal of the project in a shorter term.
- Do I need to be a legal entity to give and get money?
If it concerns equity and lending crowdfunding, then yes. Yet, when you join the donation platform or reward models, then you don't actually need to be a legal entity.
- Is it possible to get crowdfunding and keep my development confidential before I get a patent?
You’re not obligated to provide the detailed information about your development. However, if confidentiality is a matter of concern, it’s better to get at least a provisional patent before participation in crowdfunding. Therefore, both you and the platform are secure from stealing ideas.
- Why do crowdfunding websites review the submitted projects?
Firstly, not every crowdfunding platform screens your project. Yet, if they do, this is for your own good. In fact, reviews fundamentally guarantee the project to meet the website's rules and to fit the specific requirements. It’s not the system of assessing the value of the development. You may agree, people would rather post on a site that audits and controls its offerings so that your venture follows some great people's example.
- Do websites charge prepaid expenses not depending on raised money?
It’s not common for crowdfunding platforms to charge the upfront fees. You pay mainly month-to-month and exchange fees, contingent upon particular features. Keep in mind that it might take some pocket costs to create a worthy project and a beneficial campaign.