Business Industry : An Alternative Source For Finance Funding

3223 Words Apr 30th, 2015 13 Pages
Crowdfunding Industry in Business: An Alternative Source for Finance Funding
Providing a Unique Opportunity to Make Money

Executive Summary
For many years, startups and small businesses had a difficult time in raising equity and debt in order to grow and expand. Furthermore, under the laws, ordinary investors, such as friends, family, peers, and strangers are restricted to invest. Today, with a stagnant economy, many startups and businesses are struggling more than ever just to survive.

With the passing of the Jumpstart Our Business (JOBS) Act of April 2012 and advanced technology, crowdfunding has taken a whole new level in helping startups and small businesses. Instead of using the traditional banking industry, crowdfunding offer an alternative source for finance funding. Crowdfunding has revolutionized the technique of fundraising where the power of groups has the ability to support startups and small businesses with the capital investment needed to grow and expand.

In addition, with the opportunity to attract investors and a potential cash pool in excess of over a billion dollars up for grabs, choosing the right model and site is important. Since there are hundreds of sites to choose from worldwide, selecting an effective site to build a community of supporters before, during, and after business launches is a challenge.

The purpose of this paper is to analyze and explore the functions of crowdfunding as a unique source of capital funding for small businesses…
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