There are several reasons why entrepreneurs might opt for this fundraising method:
No Debt or Equity: Since the funds are donations, entrepreneurs are not required to repay the money or give away equity in their business. Community Engagement: It allows entrepreneurs to build a community of supporters who are emotionally invested in their success. Market Validation: A successful campaign can validate the market demand for the product or service, providing proof of concept. Low Risk: Compared to loans and investor funding, it is a low-risk way to raise capital.