Crowdfunding model: is it a perfect tool in a time of crisis?

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As known to our platform users, SmartCrowd follows a “crowdfunding model.” Typically, the term crowdfunding is referred to as “the practice of funding a project or venture by raising money from a large number of people who each contribute a relatively small amount, typically via the Internet.” In terms of real estate, the crowdfunding model has the same definition, except for the fact that people contribute an amount to invest in shares of property.

In addition, the crowdfunding concept is being used in many different contexts at this moment in time, not only in terms of investments but to raise money for the current pandemic situation.

As the infection rate of covid-19 has exploded across the United States, the growth of charitable crowdfunding campaigns has seemed similarly exponential. More than 35,000 covid-19 related fundraisers have appeared on GoFundMe, the New York Times reported last week, raising $60 million.

Washington Post (2020)

According to an article by Nora Kenworthy, who is an associate professor in the School of Nursing and Health Studies at the University of Washington Bothell, crowdfunding currently is being used to:

  • Support unemployed workers
  • Purchase protective equipment for medical professionals
  • Provide medical care to cope with the increasing COVID-19 cases
  • Platforms like “Yelp” are also capitalizing on this model to help smaller scale businesses

Let’s continue to use the power of the crowd not only to raise our own earnings, but to help those in need regionally, and internationally.

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