Navigating the Digital Frontier: Harnessing the Power of Online Fundraising
DECCAN CHRONICLE | DC Correspondent
From the good old days, with time, financial resources have always been crucial in establishing or sustaining a business. However, traditional fundraising methods have become obsolete. With the integration of digitalization and the internet into our everyday lives, online fundraising has become an essential means of gathering funds digitally. When the COVID-19 pandemic spread worldwide, numerous businesses were ill-prepared to navigate the subsequent shutdowns and restrictions. As a result, companies swiftly embraced the digital trend and employed contemporary strategies to adapt to the situation. This was when organizations opted for online fundraising options to stay ahead in the ever-changing business landscape proactively.
Amid the pandemic, online fundraising has saved many organizations from closure. Additionally, the significance of online fundraising has increased enormously due to technological advancements. The introduction of online fundraising has made it effortless for businesses of all sizes - small, medium, and large enterprises - to obtain financial assistance and expand their reach. Along with broader outreach, digital fundraising offers several benefits, including democratization, technological advancements, transparency, and accuracy. Moreover, various fundraising platforms have taken the spotlight, streamlining and enhancing the transparency of online fundraising while providing investors with promising opportunities. Therefore, in this growing competitive era, businesses must seriously consider adopting online fundraising to thrive as technology continues to reshape our connection, engagement, and communication methods.
Online Fundraising: A Cognizance and Its Importance
Online fundraising has become the go-to method for startups to raise funds through the Internet. Typically, this involves having an online investment page, investment form, and invest button on the website, allowing investors to contribute and invest in the company efficiently. The Internet and social media platforms have played a crucial role in expanding the reach of online fundraising. Nowadays, fundraising is not just a need but a necessity for businesses, ensuring their long-term success, as every organization has financial goals to achieve. Therefore, it is essential to secure funding to fulfill these objectives. The funding process on fundraising platforms happens promptly, enabling seamless financial planning and achieving desired outcomes.
Benefits of Online Fundraising
In today's context, it can be challenging to find mutually beneficial solutions, but online fundraising has emerged as a rare gem. The idea of online fundraising is rapidly gaining widespread recognition due to its convenience and effectiveness. Let's explore the numerous advantages that online fundraising brings forth.
Access to Funding: A few years prior, startups had to rely on personal savings, family and friends, or traditional funding sources such as venture capitalists or banks. However, online fundraising platforms are changing the game by giving entrepreneurs access to a wider pool of investors and funding opportunities. There are no geographical boundaries or restrictions that founders need to factor in anymore, as raising funds and investments happen online.
Democratizing Fundraising: Online fundraising platforms are democratizing investment by allowing anyone to invest in startups, not just accredited investors. This means that startups can get funding from a larger and more diverse group of people, and investors can invest in startups with smaller amounts of capital and affordable ticket sizes.
Efficiency: With startup funding platforms, founders can easily create a profile and pitch their ideas to potential investors, while investors can quickly browse through hundreds of startups and invest in the ones that interest them. Furthermore, online fundraising platforms are making the funding process more efficient by reducing the time associated with fundraising. For instance, some fundraising platforms complete the entire process of raising funds in just three weeks.
Transparency: Online fundraising platforms are making the funding process more transparent by providing investors with more information about the startups they are investing in. This includes financial data, business plans, progress reports and live dashboards, which help investors make more informed investment decisions. And on the other hand, startups also have details of the investors which empower them to customize and personalize their fundraising efforts.
Digital Frontier: A Boon for Online Fundraising
It is undeniably true that traditionally when in-person fundraising activities were cancelled, virtual fundraisers served as a backup. However, with the technologies and people's expanding demands, online fundraising has gained significant prominence and will be here to stay. In fact, there are no limits to what may be performed virtually today. The moment has come for organizations to grab this opportunity and use online events to exceed their fundraising goals. As a result of the expanding prospects and significance, online fundraising has become advantageous to organizations' growth and success. Thus, by leveraging the power of Internet fundraising, firms may become more effective, reach a larger audience, and develop deep relationships with their supporters.
BY: Mr Vittal Ramakrishna, Founder and CEO, POD World- A fullstack fundraising platform