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What is Crowdfunding?

Frequently Asked Questions About Franchise Funding


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…

Crowdfunding, Explained…

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:

1. Kickstarter

2. Indiegogo

3. Crowdfunder