What´s Crowd Funding?

651 Words2 Pages

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.

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