The concept of Crowd Funding

Crowd Funding has grown in popularity over the last couple of years. In 2013, the crowd funding industry grew to be over $5.1 billion worldwide and it is becoming more and more of a contender for serious business finance too. So in 2015 crowd funding is an acceptable, viable and increasingly popular means of getting an idea off the ground.

Crowd funding may be labelled as a large groups of people combining their economic power to support an organisation, company or project. Crowd funding makes use of the easy accessibility of vast networks of friends, family and colleagues through social media websites like Facebook, Twitter and LinkedIn to get the word out about a new business and attract investors. It may be thought as marriage of social media and finance. Many people like to call it "democratized financing". It is really filling a gap in the market for all kinds of entrepreneurs and small businesses who are not able to collect capital in other ways. So instead of going to a bank, we are reaching out to our social network, to people who support us.

Crowd funding has the potential to increase entrepreneurship by expanding the pool of investors from whom funds can be raised beyond the traditional circle of owners, relatives and venture capitalists. The success of crowd funding depends on  gathering a satisfactorily large group of potential financiers. The idea is the same as that of many fundraising campaigns: convincing enough people to contribute to reach a target figure.

Crowd funding sites are sometimes referred to as podiums because they offer a venue for all facets of a crusade, such as creation of the public interface, campaign and project tracking and payment mechanism and disbursement of funds.

Nargis Sultana

Nslipa13@gmail.com