What´s Crowdfunding? Essay

In summary, equity crowdfunding ushers in a fresh and enhanced way to aid entrepreneurs and investors achieve their objectives. The challenge is weighing the influence and dynamics of crowdfunding, evolving market trends, dormant regulatory and ethical concerns, stakeholder considerations, and accomplishing the goals of both parties while balancing integrity and tenets. Investors and entrepreneur believe crowdfunding is an exemplary method of raising capital. It represents an opportunity to increase revenue, cultivate an entrepreneurial ecosystem, enter an emerging industry, and create jobs. Vigilance and education play a significant role if equity crowdfunding is to remain sustainable for many years to

Crowdfunding is an emerging and progressive online platform that offers small organizations and startups with possibilities to growth their social media presence, funding base, and investment prospects. Crowdfunding, a popular idea commenced inside the US and the UK, is an rising way of raising capital, involves using internet or social networking websites along with facebook or LinkedIn or Twitter or maybe a few committed web sites. So, in case you want to raise budget, what you're required to do is create an internet profile and provide an explanation for your mission and fund-raising goals and share the identical with public at large, inclusive of your peers, relatives, buddies of friends, and so forth. Crowdfunding is the system of one

In 2014, crowdfunding raised over five billion dollars worldwide (Hyywna, 2014). Crowdfunding provides money for inventors, filmmakers, musicians, the medically ill, and even educators. On sites like GoFundMe and Donorschoose.org, teachers asked for pencils, folders, textbooks, iPads, engineering supplies, and many other items to be donated from people around the world to fill holes in their classroom and their curriculum.

Crowdsourcing websites like GoFundMe, Indiegogo, Kickstarter have increasingly become the default medium for fundraising for various causes. From student loans to mortgage payments, sites like GoFundMe provide convenient and quick platforms for individuals seeking monetary assistance and GoFundMe today claims to have raised over 3 billion in

Kickstarter is a platform where creators can get their passion projects funded through people donating to their campaign, and in turn, the backers receive rewards based on their donation level. The funding is "all or nothing" on Kickstarter, meaning that the creator only receives the money if they reach their funding goal IN FULL. Otherwise, they do not receive anything. I personally love giving to Kickstarter campaigns (especially films) because I love supporting the arts, and

If people like a project, they can pledge money to make it happen. Funding on Kickstarter is all-or-nothing. Projects must reach their funding goals to receive any money. All-or-nothing funding might seem scary, but it’s amazingly effective in creating momentum and rallying people around an idea. To date an impressive 44% of projects have reached their funding goals.

Indiegogo stands out from other competitors, as it allows for global access online. On top of this, other platforms require the crowdsourcee to contribute or provide additional ideas for the crowdsourcer. However, in this platform, the public crowd does not have to contribute thoughts or knowledge, but rather donate

Crowdfunding is a source of external finance which entails collecting money from several supporters. Businesses set up a page online, including details of where and how the money will be used. They then set a target and all the money earnt, if it has exceeded the target will go to the business. This can be used for existing businesses, start-ups, or even developing ideas. Some businesses will offer incentives for investments. This has become popular during the years and has proven to be successful. Equity based crowdfunding grew by 201% in 2014. Since securing funding 70% of businesses have increased turnover and 60% have increased employment. Please see appendix A for average growth.

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.

Loten and Neddleman (2011) researched Cupcake Suite Cupcakery, an example of an existing business that used crowdfunding. The bakery influenced people to donate money by rewarding them with sweet treats. “Cupcake Suite Cupcakery, a New York start-up wholesale bakery founded by three cookbook authors, last fall raised almost $9,000 in part through a crowd-funding platform to help offset the cost for a planned new location. Any contributor who provided at least $25 got a half-dozen whoopie pies” (para 5). This bakery experienced a successful crowdfunding campaign to fund their expansion. The bakery influenced contributors by offering whoopie pies as a gift for donating money.

“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

Contributions could be generated in return for debt, rewards, equity or purely as donations if the cause is social. This way the equity is not diluted and intellectual property and trade secrets not shared outside the business. Contributions can be made by total strangers due to having access to a wider pool of potential investors. Furthermore, crowdfunding can either be all-or-nothing (AON) or ‘keep whatever is raised’. By using the second option, even if target is not met, company can still raise some money to fund the operations.

Crowdfunding is one way that businesses can seek money to startup their businesses, finance a new product, or expand their operations. Crowdfunding raises funds or capital by using online and social media networks to get a large number of people to contribute money towards a project in exchange for a good, service or equity. Generally money is raised through a fundraising website such as kickstarter. Another way to describe the meaning of crowdfunding is by the use of small amounts of capital from a large number of individuals to

There are many problems that plague the current state of media production. One of main problems for consumers is the increasing corporatization of media. Large production companies placing strict deadlines on developers and forcing them to produce incomplete or broken products. Furthermore, succeeding as an independent producer is becoming more and more difficult. Developers no longer have the tools to compete with big producers who have millions to spend on advertising. As such, devoting time towards a project as an independent developer is risky as success in this area is few and far between. It is for these reasons that crowdfunding seems like such a great concept. Now popular sites such as Kickstarter or Indiegogo can showcase games