Essay On Crowdfunding

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In addition, due to new innovation and lack of scientific support, crowdfunding practices start to get more scientific attention from academician and the respected journals, international conference, and academic papers will help to measure the overall crowdfunding practices. The projects that funded via crowdfunding will show either it works or not and the market performance from crowdfunding platforms will find out the proper business models. Due to lack of scientific support, Hemer et al (2011) create a detail crowdfunding platform flow in order to create a better understanding of crowdfunding platform. Crowdfunding has worked as a “network orchestrators” where the formation of crowdfunding has been created as organizational systems and a place for integrating of demand and supply players (Ordanini et al., 2010). The crowdfunding has acted as relational mediators where intermediate between demands (inventor, new artists, designers, project initiators) and supply (committed supporters, backers, donors); the relational mediators have replaced traditional intermediaries such as traditional record company and venture capitalists. Crowdfunding platforms have conceptually linked the demands and supply where the committed supporters have believed to the demanders and provide monetary support to do projects (Freund, 2010). Sometimes crowdfunding platforms will have to face fraud cases, server failures and public disappointments. Due to less regulation of the crowdfunding practices and less attention from government and academician, will enables the all range of experimentation that might provide undesirable developments such as weapon development and pornography (Giuduci, 2013). If crowdfunding platform established with serious financ... ... middle of paper ... ...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.

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