Is it possible to start an internet business with crowdfunding?

Question

Computer networks

Hello dear visitor of this question!
I had this "business plan" while I was having dinner.

1. We come up with a very interesting project, make a Terms of Reference and find out the price of creating a project from the developer.
2. We organize donations. The maximum amount is the amount for hosting and the price of the project from the developer.
3. The developer develops a project with donated money. Those who made a donation are happy - they can be given a bonus on a finished project. You are also happy - you have made a very good project and now you can earn money on it!

It turns out that in this way you can create at least something for free. The main thing is to attract people and money.
Has anyone used this method? How do you personally think about it: as a customer and a fundraiser, as a web developer and as someone who will donate money to the project?
Is this method legal? Is it possible to check it?
PS This is not about investments, but about voluntary donations, crowdfunding

Answer 1

As far as I know, the most successful projects that were able to raise the required amount of money with the help of crowdfunding were all built around the production of some kind of goods (gadgets, devices, games, books). In fact, people are more inclined to give money in order to get something that they promise to produce. In this case, crowdfunding works just like a pre-order.
As I understand it, most often all the money raised goes to the production of a limited series of conceived goods, distributing them to those who gave the money, and that's it. Probably, sometimes production continues further in the form of a business, or rather, it even simply finds an investor, presenting itself to him as a prototype of a future business.

Answer 2

I had this "business plan" while I was having dinner.

Basically, such business plans do not have any weight, unless of course it can be called a business plan. Yes, an idea. Specifically, all sorts of ideas are born to me with enviable constancy, and after a while they choke in the ocean of frantic self-criticism and balanced, but short-lived analysis. You can’t just go and create a strong business at the dinner table. You need serious knowledge of the subject and a willingness to work like a donkey if necessary

Answer 3

And how much money will you need to spend to attract people? On Boomstarter, I paid attention, there were many similar ... "businessmen". But I do not remember that at least someone collected the required amount.

Answer 4

Crowdfunding is generally very difficult to start a business.
Currently, it can be more successfully used to probe the market and search for investors at the stage when a prototype already exists and a community is preferably formed.