Benefits of Crow Funding

902 Words2 Pages

Individual Case Assignment

This article emphasizes on what is crow funding? Who is a creative person? Who are called investors? This also explains about Jumpstart our Business Act and requirements proposed by Securities and Exchange Commissions. It also emphasizes on benefits, weakness, threats about crowd funding and brief explanation about social crowd funding and crowd funding in Europe.

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).

There are various benefits of crowd funding where some benefits are of internal origin and other are of external origin. The strengths of crowd funding include:

 The right to make company decisions is always with entrepreneurs.

 The raise of capital is exceptionally accessible through crowd funding platforms.

 Entrepreneurs who are seeking raise their capital through crowd funding platforms are gifted with a chance to test marketability

 Communities are benefitted by crowd funding through both local and global means (Valanciene & Jegeleviciute, 2013).

Jumpstart Our Business Startups Act (JOBS Act) which was enacted in April 5, 2012 which authorized Securities and Exchange Commissions (SEC) to allo...

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...ding. Retrieved from http://www.crowdfundingframework.eu

Valanciene L, Jegeleviciute, S (2013). Valuation of crowdfunding: benefits and drawbacks. Economics & Management, 18(1), 39-48. Doi:10.5755/j01.em.18.1.3713

http://ezproxy.nwmissouri.edu:2067/Library/IPChecking.asp?http://ezproxy.nwmissouri.edu:2057/login.aspx?direct=true&db=buh&AN=95278200&site=bsi-live

Martlina, S. & Rozarina, Z. (2013, December 19). The antecedents of interest in social crowdfunding. Retrieved from

http://studenttheses.cbs.dk/bitstream/handle/10417/4392/martiina_srkoc_og_rozarina_abu_zarim.pdf?sequence=1

Barlas, S., Brausch, J., Goldzband, D., & Murray, C. (2014).Proposed crowdfunding rules include disclosure requirements. Retrieved from

http://www.nwmissouri.edu/Library/IPChecking.asp?http://search.ebscohost.com/login.aspx?direct=true&db=buh&AN=93469602&site=bsi-live

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