Business Industry An Alternative Source For Finance Funding

Crowdfunding Industry in Business: An Alternative Source for Finance Funding Providing a Unique Opportunity to Make Money Executive Summary For many years, startups and small businesses had a difficult time in raising equity and debt in order to grow and expand. Furthermore, under the laws, ordinary investors, such as friends, family, peers, and strangers are restricted to invest. Today, with a stagnant economy, many startups and businesses are struggling more than ever just to survive. With the passing of the Jumpstart Our Business (JOBS) Act of April 2012 and advanced technology, crowdfunding has taken a whole new level in helping startups and small businesses. Instead of using the traditional banking industry, crowdfunding offer†¦show more content†¦Moreover, the strengths (advantages) and weaknesses (problems) of crowdfunding will be presented along with how different types and platforms of crowd funding can be utilized safely. Based on the findings in this report, it is recommended that startups and small businesses apply the following strategies when using crowdfunding platforms. Startups and businesses should choose the appropriate models of crowdfunding for the right purpose according to their need and select the right crowdfunding industry to reach out to the particular audience. By doing this, their campaign will be efficiently and effortlessly successful in receiving funding. Introduction The world of crowdfunding industry is fast-moving and ever-evolving. In 2011, before JOBS Act, crowdfunding was growing to an estimated 452 platforms worldwide (Wasik, 2012, p. 144). By 2014, according to Massolution, there are 1,250 active crowdfunding platforms worldwide (Marketwired, 2015). Crowdfunding industry has raised billions of dollars for businesses and other fundraising projects and will continue in the future. According to the research firm Massolution 2015CF annual Crowdfunding Industry Report, released on Crowsourcing.org, global crowdfunding has grown every year since 2011. In 2012, crowdfunding raised $2.7 billion in 2012, an 81% increase from 2011. Still growing, crowdfunding raised $16.2