Starting a New Business: Crowfunding

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To start any new business of their own, people back step for one main reason “funds”. In spite of having a very clear picture on what business to start, people being naive have their concerns towards how to start. One such solution for this problem is “Crowdfunding”. This method helps in raising the funds for the new businesses being started by gathering small amount of funds from large group of people over the internet (Turban, Volonino & Wood, 2013). At the start, crowdfunding have been used by charities to raise money. As main challenge in starting a new business is “Finance”, crowdfunding is used in diverse. For every small or new business being started getting loan from the bank is undoubtedly not easy. Under such situations rose to crowdfunding started. A good example of crowdfunding is Kickstarter.
“Kickstarter is the world’s largest crowdfunding site for creative projects”. The individuals or group of people who are willing to start a new project should upload his/her video which actually explains the overall objective, the content and the funding required for the project (Turban, Volonino & Wood, 2013). Thereby, the crowd (visitors) decides if the projects are really worth in their investments. Hence, it can be treated as a social commerce. Investors receive additional benefits like T-shirts, tickets to a concert. Also, when an investor invests some amount on the project and when the deadline is met, they check if the needed amount is reached or not. If the targeted amount is not reached, all the contributions are returned to the investors, if target amount is met then the project is ready to go and amount is credited to the project creator. Crowdfunding is growing fast in areas such as charity, music, games and many ot...

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...egies are implemented by independent filmmakers to obtain the required funds. Here the investors are rewarded by receiving gifts such as tickets for the premium screening or DVDs of the final movie. The funds collected using crowdfunding could be sufficient for pre-production process or to promote a movie and hence became a part of financial source even in movie making (Braet, Spek & Pauwels, 2013).
To conclude, crowdfunding is an internet-based method where in small amounts are collected from large crowd for a cause. It supports various fields such as music; arts etc., however in fields such as film making the crowdfunding can help only a part of the funding as this field involves a lot of finance. In today’s world crowdfunding is having a greater demand and is helpful for the individuals who are willing to create a project or new business by contributing funds.

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