Question

I want each of you to find an article on entrepreneurial finance. Whether it is crowdfunding, peer to peer lending, business to business lending, venture capital, angel investing, angel pools, bootstrapping, or business incubators. Let see what we can dig up.

Please put the title of your article or funding source in the subject. Explain the concept and add your comments/thoughts about what you find.

Answer 1

Crowdfunding- It is the process of raising the small amounts of funds via internet. In crowdfunding, small amount of money is raised from large number of people. These people can be friends, family members, customers and relatives. This has been a revolution in past few years. It is an easier and fastest source of fund. It does not need many formalities like other sources of funding. Crowdfunding gives the start ups and entrepreneur a single platform to raise all the funds.

Crowdfunding companies:

1. Kickstarter
2. Indiegogo
3. Experiment
4. Crowd supply
5. Crowdfunder
6. Chuffed etc.

Examples: Many start ups who got crowdfunding, have built $100 Million business from the fund. These are few examples of start ups who raised funds through Crowdfunding:

1. Pebble became able to raise over $10 million from 69000 backers through Kickstarter.
2. SkyBell raised $600000 in 30 days only through Indiegogo for the door bell business.