Individual Case Assignment Crowd-funding, also known as crowd-sourcing, for the past five years has

The crowdfunding has gained a lot of popularity over the years, especially in the gaming community. Not only is the industry perceived as one of the most innovative and forward-looking categories, it also connects people with a specific mind-set and an excessive enthusiasm towards it. Moreover, this community has a common interest which is closely linked with a technological element and thus the users tend to have a

The current business model went quite well for Kickstarter and it has already become a success public beneficial corporation. However, there will be some problems or challenges that Kickstarter might face in the future. Those problem will be write below:

According to Pratt and Gonsalves (2017), they define Crowdfunding as non-profit organisation or individual that want to accomplish their goal by obtaining funds through the public or crowd. Meanwhile, the business organisation or entrepreneur tends to ask for fund through the crowdsourcing website or Crowdsourcing app in order to proceed or complete their project.

will experience rapid growth as a result of regulatory changes stemming from the JOBS Act. The procedures and resolutions are finalized, and an influx of market participants will occur sometime in the second quarter of 2016. Companies are desiring to offer equity crowdfunding need to develop their internal resources to address the additional burden. Risk reduction measure become the focus of the SEC and those rules are frequently evolving (Sigar, 2012). Because of the inherent risks of startups and the intangible nature of the offerings, providing educational materials and reviewing suitability questionnaires becomes a

“Kickstarter is changing how millions of people around the world connect with dance, design, fashion, film, video, food, games, journalism, music, photography, publishing, technology, theatre, art, comics, and crafts.” Kickstarter, is unlike any other breeding ground for funding and showing the world the many projects that can be born through unique minds. Launching in 2009, they have nearly help fully fund over 77,000 projects, projects that wouldn’t have happened without support loving support from over 7.7 million backers. Unfortunately, there are some downfalls. Nearly 200,727 have been created on this website and less than half have been made from a dream, into a reality. There is no universal way of getting everyone to like your

Crowdsourcing development requires the investment of substantial capital and resources over a significant time period before the launch of the revenue-generating platform. And the possibility of revenue return is contingent on competently evaluated investment opportunity. Have you given any serious thoughts on crowdsourcing as an investment vehicle? What are some of the steps you are willing to take to secure funding? How serious are you committed in fundraising to get off the ground? What do you currently see as obstacles impeding the development progress of your crowdsourcing and/or crowdfunding currently been contemplated and planned? How do plan on overcoming some of these obstacles?

Another cause of concern is the potential for fraud. It is easy to believe that some people may just take the money without actually producing the product, however, “initial empirical data on unregulated crowdfund entities suggest that no material fraud or risk to capital providers exists” (Groshoff, 2014, pp. 550) While it is only initial data, and thus subject to change in the future, Kickstarter has a very low risk of fraud. As of 2014, only $21,324 out of $1.5 billion has been recorded as fraudulent (Groshoff, pp. 549). This shows that it is a trusted site, with very low risk by the investors (funders).

Crowdfunding is a phenomenon that emerged over the last ten years. It started with donations and reward-based crowdfunding and morphed into an option for companies to gain assistance in funding their product or idea. Studies indicate crowdfunding eliminates the geographic restrictions experienced in venture capital without giving up control of the business (Agrawal, Catalini, & Goldfarb, 2013). As crowdfunding matures, it can become more than a financing contrivance and develop into a way individuals can participate in shaping their environment through meaningful projects.

Crowdfunding in the United States is less than a decade old and remain in the infancy of its development. Group Capital, a Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA) registered equity crowdfunding broker-dealer, can glean vital information from the existing financial services model. The challenge is to evolve from the current scheme and develop an innovative process. Group Capital’s business evolution can be better understood by managing and balancing the time-scope-cost triangle, exploring the key risks and obstacles, recognizing the triggers and signals, and tallying the cost schedule.

This report is aimed to justify the choice of the source of funds for the business that the team has been planning, and identify the cost-effective and appropriate funding method that will likely to invest in the venture. To start-up with the report, a brief introduction and discussion of the business will be addressed, then follow-up with both the explanation to the attraction and risk for the business in order to pose a more accurate picture when analysing the right funding method.

Albeit the growth of funding scale, the failure rate of crowdfunded projects is very high. A report from Statistica indicates that, as of April 2017, the success rate of fully funded projects on Kickstarter.com was 35.79 percent. In other words, two-third of the listed projects failed, implying the need for more research on the mechanism and factors that affect project success. In a study by Gerber and Hui [34], they found one of the major deterrents to funders’ participation - lack of trust.

Guidici et al. (2017) believe that the CF has mainly social and emotional level and as to its concept of relying on a crowd good judgment and the belief of future profits. The investors will decide to fund the project if “the amount of money to be invested is low enough to consider negligible any subsequent loss, the project has a strong emotional content, and returns create an exclusive non-monetary benefit, that may be shared only among the financiers, enhancing the social and emotional nature of the deal.” (Giudici at al., 2012, pp.

Crowdfunding. It's a scary word for many musicians around. Yet, it seems to be more common nowadays bananas. The artists who make all their production alone to the big market, crowdfunding is the trend that allows fans of an artist get involved in their production, funding the launch of its new project by bidding data over the Internet for the artist, for a limited period of time, we call campaign. In return, supporters receive special incentives that vary according to how much money they offered.

One of the main issues that crowdfunding campaign will face when targeting B2B is the perception of being a threat. Startup businesses, especially those which branch off from small established businesses, may be seen as trying to overtake the business rather than presenting a solution to a problem of the smaller business. It is paramount that a startup establishes a trust with the smaller established businesses. Present a solution to a problem with the reassurance that the new business is not going to be competitive with the business funding the campaign. A business needs to present that it will benefit the investing business both functionally as well as financially to invest.

Research from the case shows that investment in Ed-tech space has seen a massive growth since 2009 and stood at $1.25Bn in 2013 with 70% of deals being finalized in the seed/angel round which is promising. Founders can seek to finance their start-ups from many sources such as individual or institutional investors, Venture Capital Funds or crowdfunding. However, the biggest challenge faced by them is convincing these investors that the idea is worthy enough to fund the project but without ceding too much control or diluting the product’s core proposition. For the purposes of my analysis I have decided to focus on crowdfunding and CVCs. This is because these are fairly contrasting approaches not only in terms of investor profile but also