Crowdfunding allows you to raise the necessary funds by attracting investors who want to gain access to the project. They voluntarily pool money or other resources to support the creators of an idea of interest.

As a rule, a crowdfunding project has a specific end date for investment. The author or founder also indicates the amount he needs to raise during this time. The principle of crowdfunding is the transparency of all cash flows. The investor (backer ) must understand where and in what amount his money went. In return, he receives either a part of the future profit of the project or the contributed funds in full. Some projects require a free donation.

Crowdfunding is usually used when it comes to launching a startup. This method of fundraising is also suitable for charitable, educational, environmental projects and Internet platforms of various types, for example, online media. In recent years, project authors have been actively collecting money for personal purposes.

Where it all started.

Despite the fact that crowdfunding as a method of raising funds is now popular in the Internet environment, it began to be used 100 years ago. Interestingly, one of the first known examples is associated with Russian history. In 1912, residents of the village of Turnaevo began to build the first St. Seraphim Church in Siberia, pooling their money and the funds of residents of neighboring villages. In total, about 12 thousand royal rubles were collected for the church, or about ₽7.2 million in modern prices.

However, the term “crowdfunding” appeared only in 2006, and its author was journalist Jeff Howe.

The first example of Internet crowdfunding can be considered the collection of funds for the organization of a tour of the rock band Marillion in 1997. Fans organized protests across the United States without any encouragement from the musicians. They collected $60 thousand. Subsequently, Marillion recorded and promoted several of their albums with this money.

The leaders in terms of crowdfunding market volumes are China, Japan, South Korea and the USA, where the share of such investments in the investment market ranges from 2% to 5%.

Teacher of the River secondary vocational school of the city of Turkmenabat: J.Batyrova