Crowdfunding

Crowdfunding provides access to a larger and more diverse group of investors/supporters, helps businesses and individuals grow their audience and receive funding, and offers the opportunity for investors to earn an equity position in the venture.

Crowdfunding allows entrepreneurs to raise funds from anyone with money to invest.

The two traditional uses of crowdfunding are for start-up companies to bring a product or service into the world and for individuals who have experienced some type of emergency.

<p>Equity-based crowdfunding allows startups to raise money without giving up control to venture capital investors, and offers investors the opportunity to earn an equity position in the venture. The SEC regulates equity-based crowdfunding in the United States.</p> Signup and view all the answers

<p>The purpose of regulations on funding for new businesses is to protect unsophisticated or non-wealthy investors.</p> Signup and view all the answers

<p>Individuals affected by tragic events such as natural disasters or house fires benefit from crowdfunding.</p> Signup and view all the answers

<p>An example of an amusing project that received funding through crowdfunding is a new potato salad recipe.</p> Signup and view all the answers

<p>The purpose of crowdfunding platforms is to provide financial relief to individuals who wouldn't otherwise have access to it.</p> Signup and view all the answers

<p>Yes, crowdfunding may damage the reputation of a company or individual, and crowdfunding sites charge fees for their services. Additionally, if funding goals are not reached, investors receive their money back and the company receives nothing.</p> Signup and view all the answers