Advantage Of Crowdfunding

The term crowdfunding is derived from the broader concept of crowdsourcing, which was founded in 2006. Crowdfunding is a relatively a new form of informal financing of Projects or a business venture by raising monetary contributions from many people. The investors in these cases are called crowd funders. It draws inspiration from knowledge like micro finance and crowdfunding. Indeed, represents its own unique classes of fundraising by the growing number of people. Thus, it helps people to have positive dedication towards work. It also motivates people to finance the companies by providing feedback (Belleflamme, Lambert and Schwienbacher, 2013, online). Crowdfunding is a different setting for raising of funds and it is somehow less clear how individual demonstrates strategic networks in an environment. Crowdfunding is well famous for increasing charitable donations in earlier days. But, now it is unlimited and can serve more than just non-profitable business. Funding is received from both commercial and social sectors compared to that of social media i.e. online transferring messages and small payment

Despite, this has been important in an industry where projects seek to create ecosystems in the products. The crowdfunding overall has achieved remarkable success and has emerged a method of funding new ventures.

Next merits of crowdfunding is that the successful fundraising for business ventures have been of great interest of scholars mostly, in the context of capitalism. The features of projects ensure that higher quality projects are more likely to receive funding activities. Instead, critics of crowd funding raised concerns that project quality may be unclear to the founders in crowdfunding settings (Allianz Business Services ,2014, online). Financing helps to raised small amount of money from large