Crowdfunding Essay

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CROWDFUNDING
Crowdfunding is an intermediate platform which uses social media, bigdata and cloud technologies to significantly fund small and medium scale industries to start up the industries.
Below content describes the few types of Crowdfunding, how the Crowdfunding platform works and reaches its goal,how the investors in it finds it as the risk and later finds as a beneficial one. Investors in the Crowdfunding take care of the deposited amount and avoids fraud transactions and what are the tips followed by the investors and how it will be useful for all the donors who donated their amount and also the advantages of Crowdfunding. In addition, how the Crowdfunding will be useful in the marketing and many other fields.
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).
Crowdfunding is a new sector and is still developing. It is an exciting opportunity for many of the new, small and medium scale industries whose proposals are rejected by the banks.It may be confusing to most of the users as it is presented in many ways. We have there aspects in Crowdfunding investments or donations, platform, project creators. Crowdfunding works as first the idea or the proposal of the person is uploaded into the platform in which all the donators are registered. The donators view the proposal of the person and then decide to invest o...

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...ollars.by this congress has also passed an act named JOBS which is to provide equity based Crowdfunding. The companies are using Crowdfunding to raise their capital using Social media. (Ma, S. S. (2013). Book review: The Crowdfunding revolution: how to raise venture capital using social media. Journal Of Commercial Biotechnology, 19(3), 76-77. doi:10.5912/jcb.621)
Crowdfunding if used properly can be very useful and is a vast financial tool for small and medium producers. It can be used to develop, deploy and launch projects with partial funds. There are still few legal issues which arise due to the basic stage of Crowdfunding. As it increases the legal and security issues will also get strengthen. The support from people can also be used as a promotional strategy (SATORIUS, D. M., & POLLARD, S. (2010). Crowd Funding. Entertainment & Sports Lawyer, 28(2), 15-17.)

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