CROWDFUNDING
Define Crowdfunding
When large number of people come together and contribute small amounts of capital to finance a new business venture is known as Crowdfunding. Crowdfunding is further made possible with the help of platforms like Social media and various crowdfunding websites as they provide easy accessibility of vast networks over it which eventually brings investors and entrepreneurs together.
How does it work?
Crowdfunding has bagged in various opportunities for entrepreneurs to raise hundreds of thousands from anyone with money to invest. Impact Guru, Range De, Faircent, Ketto, Fueladream etc. are few of the top Indian crowdfunding websites which attract thousands of people hoping to invest in their venture. Impact Guru
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And in no time, we all will be using Social media as a platform to increase our business. Social media is very easy to use. Almost everyone nowadays accesses internet over their smartphones. Crowdfunding too will find its way of becoming an effective platform for various companies and organisations in order to increase their business ventures. People will definitely prefer taking the help of crowdfunding platform for raising funds and helping their near and dear ones. Crowdfunding has also proven to attain a high success rate over the years as it is easy to set up and efficient. If we go to see the Indian crowd nowadays, we all want everything at a fast pace. And if we go to see the crowdfunding platform, the funds will be collected in no time. It is easy to set up the campaign add and all we need to do is to share it over social media platforms like Facebook, Instagram, and also emails to our near and dear ones. People have become inclined towards social media platforms so much that they prefer using it over getting out and reaching to the Bank and request for funding. They very well know that the Bank will m1ost likely refrain from offering funds and loan. So I feel most of the people will opt crowdfunding as a platform to grow their business or put value to their ideas. It can also be used as a marketing strategy where as in the business firms can effectively do market research on the emerging products and services. Most importantly, the people who want to contribute through Crowdfunding not only consists of friends and family but also Non-Resident Indians. Moreover, if we go to see the future of crowdfunding in India, it is very bright. Being a highly populated country we have a great number of contributors. It is said that we Indians do have a great Social network connect and a well-knit family, so that will eventually help in raising funds quickly. Through crowdfunding it will be much easier for the
Crowdfunding websites offer feasibility, convenience, and popularity on a global reach, thus catering to the needs and functionality of members on a large scale. Kickstarter is a crowdfunding platform that allows filmmakers, musicians, artists, designers, and anyone attempting to generate funding for a creative project to gain access to a supportive community willing to pledge money. As an artist, using a service like Kickstarter is crucial if the opportune moment presents itself with attention from fans and journalists, especially if the media attention is available to the public. To utilize a crowdfunding website such as Kickstarter when attention exists on a particular artist creates a sense of investment and community between fans and the producer of the project, thus aiding in the consumption and circulation of an artist’s project throughout the net. Therefore, this paper will argue the wide range of support and backing of fans for an artist’s work makes the benefits of involving users outweigh the disadvantages of involving users in the platform process. Users engaged in Kickstarter offer a sense of community created through fans, a donator sense of investment in the project, and if successful, a sense of reward. Whereas the disadvantages of using a Kickerstarter platform runs a risk of failure if the project does not succeed, possible disappointment and anger with fans, and potential legal issues.
This new concept does not compete with the previous concepts listed because Impact Investing is one step further. Impact Investing aims to do more than doing no harm, it wants to use investment as a positive tool to support companies that have the potential to solve social challenges, but that also produce financial returns. In this spectrum line of concepts, Impact Investing sits in middle, while SRI is on one side and Venture Philanthropy is on the other. It was not only the term impact investing that was coined in 2007. It was also the creation of global network of individuals and institutions that shared the same idea of growth, known as Global Impact Investing Network. (Rodin & Brandenburg,
Although small businesses do not make a lot of major deals with large investors, most small businesses create profit revenue greater than large corporations. Small business creators are very brave considering only ten percent of small businesses survive. Unfortunately, some communities do not support local small businesses; they only support the large brand name and force small businesses to die out. Since small businesses will not have a name brand known around the world, many people from communities will not support them because they are not known on a national scale. “This, in turn will affect the local economy and drive capital out of their local economy. On average, for every one hundred dollars spent in an economy, if spent on a
Venture capital is an equity source of finance to entrepreneur and SME’s. Venture capitalist are financial institutions that invest massively in young businesses with a high growth potential. Most of their investments are very risky and at the same time very profitable, if successful. Venture Capitalist are financial intermediaries that is, they invest the money of other individuals or organizations. Not their own money. This is why they usually require to own part of the company so that they can closely monitor their investments. Another reason is that they generally maximize profit by selling their shares in the firm through Initial Public Offer (IPO). (Markova & Petkovska-Mircevska, 2009, P. 4).
The Twitter revolution has contributed majorly in our society’s manner. Students have utilized this outlet for beneficial purposes. While Twitter may solve the problem of promotion, funding then becomes an issue. Bake sales, sponsored 5K’s, and fundraisers can only go so far. However, there is a new social media outlet parents with terminally children have turned to. They are able to raise the money needed to fund and conduct experimental drug treatments that heal their little ones. It’s called Crowdfunding. This allows the general public to contribute funding set-up for specific purposes. One family has set up a fund in order to raise money for experimental drug trials that could save their little girl’s life. Like others and myself, those that deem this issue worth funding can also do their share by committing a small or large amount of
Before 1980 the only way to find the investment for any startups was banks and in 1980's there were investors who were interested in technology business. In this 20th century, small and mid-sized enterprises (SMEs) have a low income and are not easy to get capital or financing from any financial institutions or bankers, but startups have an option to find their investments through a strategy called Crowdfunding, a venture to raise money from various people. This review infers the content on influence of crowdfunding in small and mid-sized enterprises (SMEs). This review emphasis on how crowdfunding is growing in SMEs, what are advantages and disadvantages of crowdfunding and a case study on how a company from Indonesia raised their money using crowdfunding.
Social media avenues are a new, upcoming, and popular way to advertise for businesses and for people to connect to each other. Alexis Ohanian once said that "Being effective at social media, whether for business or personal use, means capturing people who have short attention spans. They 're only a click away from a picture of a funny cat, so you have to make your thing more compelling than that cat. And that can be a high bar." (Ohanian) Powerful usage of social media can have a big impact.
As a massive provider of consumer goods in India, Hindustan Lever Limited (HLL), is attempting to penetrate the rural markets where there is a massive opportunity for growth. HLL’s current operating sectors are becoming increasingly competitive and crowded. Their best opportunities now lie in developing new markets and rising to the top of that market. They are attempting to do this with a program for developing entrepreneurs, named Shaktis. Met with initial success the program now needs to grow without increasing costs.
Technology has come a long ways from its existence till today. In today’s modern world, people are surrounded by technology everywhere. In the present, people are surrounded by disrupting technologies every day. Today innovators are always creating new technologies that will make an impact on the daily lives of millions. Technology has made the lives of many people easier. The influence of technology has made an impact on social media. Social media has impacted the society in many ways. Whether it is the life of an individual to how successful a company is going to be. Social media is not just about tweeting about what you just accomplished or instagraming what food you are about to eat at a very nice restaurant. The uses of social media is way broader. Now most social media companies are buying out and merging with many other companies that will be off use to them. The people of society has certainly come from a long way. Social media is influencing consumers in what they are going to buy next. Social media is helping businesses to become more aware of their impact they have on they customers. Social media has a big presence for an individual and a business. This research paper is going to be over how social media impacts an individual. Then it is going to be about how much of an impact it has on businesses. Afterwards it is going to go over the pros and the cons of social media in society. Then this research paper is going to conclude on where social media is heading towards in the near future and so on.
Today 's generation is all about social media. It is the new way to have instant connection to thousands all over the world. Today 's company are now doing less traditional television, radio, and print advertisement and more promotion via Twitter, Facebook and/or Instagram. Companies are invested in getting famous people to post pictures or tweet about their products, knowing that, one person can connect with millions with just one post. Over half of the world has access to social media, making them great consumers. Social media benefit marketing by giving the companies the opportunity to learn their audience/consumers, having access to instant feedback and bring awareness to here product.
It surpasses the traditional means of business, businesses can now be heard and visible and given a platform to communicate with customers like never. Marketing is a management process that identifies, supplies, and presumes customers needs or requirement and want. Social media marketing is a platform that helps regenerate an organization marketing techniques. It helps create a new perception about the company’s product and the vital marketing programs and create a method to become an edge in the online business world. Businesses can benefit from social media through reduction of cost by reducing staffs working hours and increase revenue. Social media marketing the fastest means of get words out about a business or product, that is why eventually all business are buying the initiative. Most marketers who are already established in the new social media initiative are beginning to implement their own tactics which has brought social media to a greater height than it was before. These popular websites could be a great approach for companies and customers to improve their communications by applying them in computers and mobile devices. Social media marketing is a term not really known by lots of persons. Lots of companies go into it not knowing the risks or opportunities involved. Social media marketing is very beneficial for
We can now connect with each other instantly over the internet. It is quicker and easier to communicate and share with each other now than it has ever been. Massive amounts of people access the internet every day, and a good number of them are using social media. This means that the ability to use social media and use it well is crucial for modern businesses. Whether for public relations or advertising social media is now one of the best ways to access consumers. Especially when it comes to younger generations, if you aren’t online you don’t exist. Social media is an excellent way to establish a presence in the minds of consumers. They can interact and establish a connection with an organization instantly. Social media is cheap and its everywhere. If a business hopes to compete in the modern world having a social media presence is absolutely
Social media is a form of online communication channels devoted to society input, intercommunication, and cooperation. In social media, people can talk and interact without restriction, exchange and debate information with each other about their lives by using many different combinations of the words, personal multimedia, photos, and videos. Also, in social media, individulsa and groups can create, edit, comment on, and engage in personal conversations. There are numerous types of social media, for example, wikis, blogs, social network site, micro blogging services, and sites sharing media. At the beginning, social media was limited to a few networks sites, for instance, Bulletin Board System that allows people to communicate with each other and post a comment. Today, social media has transformed from ineffective sites to more useful and effective websites, for example, Facebook, and MySpace. Some companies are using social media to achieve their goals which is attracting more customers to company website. Three advantages of using social media in business are: raising brand consciousness, building customer relationships, and increasing performance measurements.
An important term that is cropping up everywhere nowadays is “Microfinance”. It is important for every person interested in the field of finance to be aware of this term, as in the coming days Microfinance is expected to be one of the brightest and the most appealing sector of the Indian Economy.
Studying Banking and Finance at University of St.Gallen will help me further increase my proficiency in corporate finance and financial markets. The in-depth research of specific topics, as well as a comprehensive curriculum, is a possibility for me to focus on my topic of interest – the mechanisms and institutions involved in providing venture capital and identifying angel investors as means to encourage innovation.... ... middle of paper ... ...