Crowd Funding Via Internet

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CROWD FUNDING Crowdfunding means association of people who gather their money mostly via Internet. The other meaning of crowd funding is crowd financing and crowd investing. some entrepreneurs have started to rely on the Internet to directly seek financial help from the general public (the crowd) instead of approaching financial investors such as business angels, banks or venture capital funds .(Armin Schwienbacher &BenjaminLarralde,2010) More conceptually, Lambert and Schwienbacher (2010) extend the definition of crowdsourcing provided by Klemann et al. (2008), by depicting crowd financing as an open call, for the procurement of financial assets either in type of gift or in return for some manifestation of prize and/or voting rights so as to help activities for particular purposes. (Armin Schwienbacher & Benjamin Larralde,2010). If the Crowd funding is successful then the company not only secure their funding to start their projects but also take back their potential customers. This interpretation emphasizing the importance of interpersonal relations in entrepreneurial finance is consistent with the findings of Nanda and Khanna (2010), who report that cross-border social networks play a particularly key role when access to capital is especially difficult. Financing is a core component of any business. Crowdfunding, raising small amounts of money from many people, grew from a $32 million market in May 2010 to a $123 million market by May 2012. Kickstarter transformed the investment process for investors and entrepreneurs by providing a funding alternative to turn good business ideas into reality. (Gregory Wood, 2010, p.13) Crowdfunding Kickstarter is the world's biggest crowdfunding site for imaginative undertakings. Kicksta... ... middle of paper ... ...reserves from yearly store or capital crusade exertions. As the quality and fame of crowdfunding develops, organizations will need to modify their reasoning to oblige with what has effectively turned out to be a fruitful tool. (Judith Rosen,2013) References: • Armin Schwienbacher & Benjamin Larralde, (2010). Handbook of Entrepreneurial Finance (Oxford University Press) • Efraim Turban, Linda Volonino,Gregory Wood (2010 ,p.13). Information Technology Management. • Judith Rose (March 2014) Beyond the Bank: Bookstores and Alternative Funding Retrieved from http://www.publishersweekly.com/pw/by-topic/industry-news/bookselling/article/61545-beyond-the-bank-bookstores-and-alternative-funding.html • Karine Joly (July 2013).Higher education crowdfunding Retrieved from http://www.universitybusiness.com/article/crowdfunding-follows-social-media-moocs-higher-ed-trend.html

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