With business loans from financial institutions increasingly hard to come by, determined entrepreneurs are turning to alternate sources of funding to get their start-up ventures off the ground. Bring on crowdfunding…
The clue’s in the name – crowdfunding operates outside of the traditional financing system, leveraging the collective monetary clout of large groups of ordinary people who see the potential of, or are interested in, a particular business proposition. According to Entrepreneur magazine, the crowdfunding industry is worth an impressive $16.2 billion worldwide. Who needs bankers, anyway, eh?
How Do I Access Crowdfunding?
Crowdfunding typically operates via an internet platform which brings together those with the business ideas looking for investment and those with the money to invest. Would-be entrepreneurs pitch their ideas via online profiles and videos, and investors pledge money, as little as a couple of dollars each if they like the idea, to see it happen. To see crowdfunding in action, check out: