Crowdfunding Case Study

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Introduction:
Background:
In modern world, small and medium entrepreneurs often find it hard to finance their ventures. People with innovative business plans and products often struggle to finance the required investment to start a business. The idea of “Business Angel” is a few people who have surplus money and knowledge, invest money in new small and medium enterprises to help them to start a business. “Crowdfunding” is a new concept and more similar to “Business Angel” except the fact that in crowd funding donations are collected from a large numbers of individual donors for a cause or for the startup of a business or for charity works. Crowdfunding became popular when a musician from Boston, USA launched “Artistshare” in 2003 to finance the production costs of the Music albums that will only be sold over the Internet. Since then many Internet based platforms were established to help the entrepreneurs or people to collect donations from individual donors for their cause or business or for social causes (Schwienbacher & Larralde, 2010).
In recent times, most of the charity organizations are collecting fund from general public over the internet. Even present President of United Stated of America, Mr. Barak …show more content…

Almost all charity organizations operating internationally, are raising funds via crowdfunding. Now-a-days people have chosen crowdfunding as the best way to raise funds for social causes and events related to general awareness or social gathering. From funding someone’s medical fees or educational fees to raise funds to fight with natural disasters of a country. If we look at the latest event that just occurred in Nepal, a major earthquake hit Nepal on 25th April 2015 and it is feared that more than ten thousand people died. To send humanitarian aids in Nepal, almost all NGOs are raising funds via crowdfunding. Individuals are donating their money through

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