New Paradigms in Crowdfunding: Volume 1

Crowdfunding is the practice of funding that involves the use of small amounts of capital from a large number of individuals to finance a new business venture. It exploits the easy accessibility of vast networks of people through social media and crowdfunding websites to bring together the investors and entrepreneurs. Crowdfunding aims to boost entrepreneurship activities by widening the pool of investors beyond the traditional circle of owners, relatives and venture capitalists. The two primary types of crowdfunding are rewards crowdfunding and equity crowdfunding. In rewards crowdfunding, entrepreneurs pre-sell a product or service to launch a business concept without incurring debt or sacrificing equity/shares. It can be used for several purposes such as album recording and motion-picture promotion, free software development, inventions development, scientific research, and civic projects. Equity crowdfunding or investment crowdfunding is a method of raising capital used by startups and early-stage companies. In this method, the entrepreneur offers the company's shares to investors who invest during the initial stages of the start-up company. This book provides a comprehensive overview of the new paradigms in crowdfunding. Those in search of information to further their knowledge will be greatly assisted by it.