Essay On Crowdfunding

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Recommended: Project life cycle and organization

Individual Case Assignment – Shruthi Lella
Crowdfunding is the process of attaining funds through peers and others to invest in one’s project. The concept of crowdfunding is used in diverse fields like movies, music, technology, food, art, design etc. which has proven a greater success in such fields. The main participants involved in this process are project creator and backers. Project creators are those who request funds to develop the project. Backer pledges money on interested projects proposed by the project developer. Funding goal is the total amount backers fund to the project developer. The major platform for crowdfunding is Kickstarter.com. The process of crowdfunding goes as follows: The project developers provide an overview of the project and sets a deadline through a website. Next visitors visit the website and make pledges (financial transaction) which are maintained until the project deadline. If the project meets the deadline, the developer receives the money, else everything is returned back to the respective backers (Turban, Volonino & Wood, 2013).
Hence, the concept of crowdfunding stands as the backbone to many projects in terms of finances (Turban, Volonino & Wood, 2013)..
This paper discusses about the concepts of when to use crowdfunding and few live examples of crowdfunding.
Crowdfunding is used when a project is in its initial stages. But when the project chosen grows as the time passes then the concept of venture capital (VC) can be introduced. In larger industries such as biotechnology, when project is in a growing stage VC provides a good support. The major advantage with VC is, it links with the database of the company that is investing in a particular project, data like company name, location, etc......

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...&AuthType=cookie,ip,uid&db=buh&AN=88014378&site=ehost-live
Lombe, M., Newransky, C., Kayser, K., & Raj, P. M. (2012). Exploring barriers to inclusion of widowed and abandoned women through Microcredit Self-Help groups: The case of rural South India. Journal of Sociology & Social Welfare, 39(2), 143-162. Retrieved , from http://www.nwmissouri.edu/Library/IPChecking.asp?http://search.ebscohost.com/login.aspx?direct=true&AuthType=cookie,ip,uid&db=a9h&AN=76314566&site=ehost-live
Turban, E., Volonino, L. & Wood, G. (2013). Information Technology for Management: Advancing Sustainable, Profitable Business Growth, 9th edition. Wiley publishing.
(ISBN: 978-1-118-35704-0)
Zachary, R., & Mishra, C. S. (2013). Research on Angel Investments: The Intersection of Equity Investments and Entrepreneurship. Entrepreneurship Research Journal, 3(2), 160-170. doi:10.1515/erj-2013-0044

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