Crowd funding is to get financing/sponsors for a new project by attracting the investors by sharing about his/her project ideas through web. Crowd funding is to collect small amount of money from large no of people (i.e. crowd) by sponsoring money to encourage new people for developing project with creative ideas. There are many platforms to sponsor people for new projects such as Kickstarter which provides funding for creative projects. To get funds for the project from these platforms, Project creator need to share his/her project with video describing project and expected amount of money in dollars, Then the investors who will have interest to invest their money in that project will respond and provide some money for the project. I would like to discuss in this paper about -crowd financing, Things to know when someone wants to start crowd financing, Kickstart for funding, Risks involved in crowd financing. In the earlier days, if we want to start the new project, we could collect the money by either taking loan from bank or lending money from family/friends. These are the only option we could start the new project/venture. “Due to global banking crisis, most of the banks in U.K were completely shut-down and some were getting down. That led to obtain funding for new business was impossible. Then crowd funding had come to picture to get their businesses off the ground”. (Coffer, David, 2013). Crowd funding is not a new method to get funding, we had similar types of well-known names like Mozart and Mark Twain to raise money for the new project. There are various websites available in the field-restaurants/hotels which use crowd funding. Now a days, Restaurants and street food operators are dedicated to crowd funding to improve th... ... middle of paper ... ...federal trademark application will be at risk if the same project/product that has same set of rules and output and was filed in US federal trademark. Most of crowd funding websites does not mention the requirements by showing security for the money spent by the investors. These risks may make the investors feel of dislike to invest money on the new projects. Crowd funding is the concept to encourage new ideas from new generation by providing ways to fund their project. Even though we have some problems for collecting money from investor, Innovative ideas and well-planned projects will create opportunity for those who want to start the new business/project. How to overcome the risks in crowd funding? US government introduced a new Act i.e. everyone who wants to invent a new product/project into market they has to register his/her own idea of developing a project.
...se enough money during a certain period of time the inventors get start their proposed project.
Kickstarter serves as an active forum, where fans not only can connect and observe what their favorite artist is currently involved in, but also fans can provide valuable feedback and express their necessity or hatred for a particular project. After the failures of the dot-com bust, a new economic and social platform emerged within Web 2.0. Internet users are thus granted the ability to contribute to a participatory culture, and now more than ever user contributions
Finding the right investor is important – you’re looking for a VC that understands your passion and vision. If they do, they should understand the exact value of your startup and not value it too low. When the valuation is low, the investor might not really get your business.
Crowd funding which also known as crowd source funding or crowd is financing, is a process where a large number of crowd is asked to raise money for new projects through web. Kickstarter is most commonly used site for crowd funding. Kickstarter is similar to eBay where kickstarter is used to crowd funding; eBay is used for auction. A creative person whose role is to post his/her project with video explaining the brief description of the project and also the target amount in the kickstarter site is called the project creator. The target money requested by the project creator is called funding (Turban, Volonino & wood , 2013, p.2).
Project initiator, also known as creator or founder, is a term for anyone that utilizes crowdfunding practices to funding their concepts, ideas, project or venture (Wechsler, 2013). This project initiator can be individual, organization, small medium business (SME), students, event organizers, entrepreneurs, musicians, filmmakers, designers, inventor, non-profit organization, politician, artists, writers, philanthropists and the crowdfunding platforms themselves. It could be anyone with an idea or concept and need funding to realize their project.
Project finance is not the same thing as "financing project " because the project may be financed in many different ways. Traditionally, the large scale public sector project in the developed country were financed by public sector debt, Private sector were financed by large companies raising the corporate loan. But in developing country project were generally financed by the government borrowing from the international banking market world bank such as world bank, throgh export credit.
Our body of patent law is authorized by Article One, section 8, of the U.S. Constitution. It states that Congress shall have the power to promote the progress of science and useful arts, by securing for limited times to authors and inventors the exclusive right to their respective writings and discoveries; writings in this instance would address copyrights. This exclusive right allows the innovator to prevent others from making, using, selling, exporting and importing the product of a patented process.3 In an ideal system, patents would behave like property rights, so that they may be sold, licensed, given away, or abandoned, just as they may be actively developed. These exclusive rights are mandated by U.S. law, the term of which is 20 years in most cases. All law pertaining to patents is found in US Code Title 35; the patentability of inventions is defined under Sections 100-105. Most notably, section 101[1] sets out subject matter that can be patented; section 102[2] defines novelty and loss of right to patent; section 103[3] lists what constitutes non-obvious subject matter.3 Our nation’s law differed markedly from European patent law in its “first to invent” nature. Until recently, our system determined who actually was first to invent rather than just “first to file” when awarding a patent. A measure aimed at increasing US Patent Office efficiency has revised this stipulation and brought U.S. law into closer harmony with the international community. International patent law is a vast topic on its own and will not be visited in this paper in great detail due to the emphasis on effects concerning our own economy; changes in international intellectual property law undoubtedly have an influence on our economy but are negligible ...
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
The Article describes about crowdfunding or crowdsourcing. It is a model to collect funds for a specific project. I am going to present about the detail description of crowdfunding. It is described with an example- A person has a project in his mind and it is very much useful to the people but he doesn’t have the funds to develop that project. In that situation he has to approach a bank for loan, if the bank doesn’t sanction the loan then one of the alternate and ultimate solutions is crowdfunding. It helps individuals to generate funds required to complete the project.
There is no need for raising capital; Limited Partnerships are mostly essential when it’s about raising investments. If a venture does not need additional funding, then a limited partnership may not be of need.
In fact a project can become quickly a money pit. That is why the initial budget has to be established before the go live of the project and it has to be a follow-up of this budget at every milestone.
There are countless types of crowdsourcing such as crowd funding, crowd sourced design, and Crowd wisdom. Crowd ...
If you’re ready to use crowdfunding to make money for your business, follow these tips.
...in many ways to maximize the success factors (Isenberg, 2012). Crowdfunding platforms should list an advice or frequently asked question (FAQ) on how to create project pitches, create images and videos and how to choose donation categories. They also need to put algorithms search that can automatically analyze pitches in terms of word count, sentiment and readability to attract more crowd. Crowdfunding platform continuously growth and attract the investors and cut the intermediaries by eliminating service providers’ activities previously involved in the network. The platforms have used crowdfunding to find stakes from private investors who own high capital and match them with people who own the ideas. Crowdfunding become threat to bank and conventional loan system, due to creative individual and small medium industry (SMI) prefer take their chance to this platform.
There are at least four types of Crowdfunding platforms like donation based Crowdfunding, reward based crowd funding, credits based Crowdfunding , equity based crowd funding etc.In donation based Crowdfunding, people donates money to the customers whereas in reward based Crowdfunding, people will be rewarded for their donation ( Colgren, D. (2014). The Rise of Crowdfunding: Social Media, Big Data, Cloud Technologies. Strategic Finance, 96(4), 56-57).