Crowdfunding :
This reaches large number of people for non-financial support like support, sharing ideas and feedback on the existing product or service. This gives you a valuable inputs and ideas from the most potential customers or people to implement your project or concept.
Non-Equity Crowdfunding :
The aim of Non-Equity Crowdfunding is to obtain or mobilize money before launching your product or service like doing product pre-sales, conducting special events and recognizing sponsors.
This would be the best way to make the backers or supporters to get more confidence on your product or service.
Equity Crowdfunding:
The main motto of Equity Crowdfunding from large number of individual’s in-return of small amount of benefits or stocks from …show more content…
As successful creators and funders tend to know other successful creators and funders, we are finding it more difficult to identify people who created and funded projects, which were not successfully funded. We feel this data is critical for understanding motivations for participation and will work directly with our contacts with executives at the Crowdfunding platforms to identify such people. Additionally, we acknowledge that motivations for participations could be influenced by the time at which we interview people. People who have funded a project and received their reward may report different motivations than people who have funded a project but not yet received their reward. Our informants are restricted to participating in one of three Crowdfunding platforms. We chose these platforms because they are the three most popular platforms for “creative work”. However, there are additional Crowdfunding platforms. It is possible that people who participate on other smaller platforms have different interests and expertise and therefore are motivated to participate in these platforms for different reasons. However, research needs to be done to understand these …show more content…
It can improve access to capital, help manage supply and demand, drive innovation and efficiency and fund new markets. Through crowdfunding, entrepreneurs can also benefit from aggregating and understanding demand for a given product or service and from an assessment of a proposed pricing.
The closed and private nature of investing in small businesses and start-ups will change rapidly as the social web affects the flow of both information and capital to these companies. The rise of crowdfunding as a more distributed way to form capital is aligned with the changes in the flow and distribution of information (via the Internet) and the creation and distribution of manufacturing capabilities (maker spaces and fabrication centers). Existing securities regulations were not crafted for the social web. Governments and policy experts worldwide are considering the possible impact of crowdfunding and crowdfund investing and trying to fashion new regulations, empower new technologies, and equip entrepreneurs with sufficient information to decide if crowdfunding is a viable funding or investment vehicle for these enterprises. The rate of growth of crowdfunding, and its emergence in developing and developed countries, suggests that this phenomenon can become a tool in the innovation ecosystems of most