Critical evaluation of crowd funding

Running head: CROWD FUNDING
Crowd funding
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Author Note

1CROWD FUNDING
Critical evaluation of crowd funding
Introduction
The crowd funding process is the use of small amount of capital from a greater
number of individuals to finance a fresh business or a venture. The process makes use of the
easy accessibility of was network of people with the help of social media and the various
crowd funding websites that enable the investors and the entrepreneurs to get together and
invest funds in the business. The investors can get easy ownership the companies
(Kuppuswamy & Bayus, 2018). The Crowd funding has created a great opportunity for many
investors, today's hundreds and thousands of investors can earn money from the amount they
have invested in a particular company. It provides a forum for everyone with an idea to raise
money online.
The advantages of crowd funding is as follows:
 The business can set a target of the amount of money that they want for raising a
particular project (Agrawal, Catalini & Goldfarb, 2014).
 crowd funding that are projects get a large amount of attention on the social media
with the help of which they can raise beyond what the amount raised alone could have
done.
 Project pitching of venture through the process of crowd funding can be valuable
form of marketing.
 As part of Crowd farming process the feedback from the customers can easily be
obtained (Manchanda & Muralidharan 2014).
 The audience of the business in social media becomes its most loyal customers.