About Crowdfunding and the projects funded through this system, we have been hearing a lot lately, but what exactly it is and who can access such a source of funding is still a mystery for many.

So, what does Crowdfunding mean?

The term, which in Romanian would translate as multifinancing, designates a source of funding for a business or a project by raising money from various sources. Platforms of this kind facilitate and mediate the relationship between a startup company and potential investors. In other words, a company that wants to launch a new product or service but does not have the necessary financial resources applies on such a platform, presents its idea, and requests funding. Those interested in the idea can contribute a certain amount of money to support it. In exchange for this help, the company can offer various things, from a simple thank you on the official website to the product or service to be developed or even shares in the company in question.

This way of raising the necessary money is widespread in many countries, being present in ours for only a few years. Its fields of application are unlimited, as money can be requested both by companies and NGOs or various organizations and associations that propose cultural or sports projects.

One of the major advantages of this Crowdfunding is that companies can obtain money without going into debt. Even if they offer something in return, companies do not have to pay interest, fear that they will not be able to finance the entire project until the end, and that they will be left with both the bank debt and the installments to pay. The legal aspect of these financings is now also being debated in the competent circles, with a draft law already being prepared in this regard.

Another very important aspect of this system is related to market research. After your business idea is presented to the world, people will start analyzing it and, if they like it, they will finance it. Depending on people's interest, the success of your product will be seen. If no one finances it, then it means that the product will not be successful once launched, so maybe it is better to give up the idea. If, on the contrary, people come in very large numbers, then you have huge chances to sell the product later.

From here comes the third major advantage, namely the one related to publicity. The platform is, after all, the place where products and services are promoted even before being launched, so they will have an advantage in this regard. The notoriety will later translate into income.

In the United States, such platforms have existed since the 2000s. The oldest and best known are Kickstarter and Indiegogo. While the first focuses on creative projects and does not address businesses or NGOs, the second is open to everyone. We also mention Crowdfunder, RocketHub (focused on donations), and Crowdrise.

In Romania, several such platforms have appeared in recent years, some of general interest, others mainly dedicated to funding NGOs and cultural or social projects.

Crestemidei.ro is one of these platforms, which operates and has already funded a number of projects, many of which are in the areas of sports, education, and film.

Another such platform is potsieu.ro, which is also in the social and cultural area, with a few funded projects. Wearehere.ro has also gathered numerous projects from the cultural area, many funded with amounts up to 3000 euros, which is however fair considering the level at which the cultural world and society in general are in our country.

Multifinantare.ro has a larger number of submitted projects, but the success rate is not yet very high, probably also because this system is not yet well known here, and those who have heard of it do not know it very well.

The success of these platforms is ensured as long as the legislation manages to provide equal protection to both parties, that is, both those who want to obtain funding and those who invest money in an idea.