Crowdfunding in Australia and USA
Added on 2020-07-23
12 Pages3225 Words226 Views
|
|
|
Crowdfunding
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1TASK...............................................................................................................................................1Crowdfunding and the mechanism for Capital Raising.........................................................1Examples of Crowdfunding used for the Commercial and Social Context............................4Legislation regarding the Crowdfunding in Australia and USA............................................6CONCLUSION................................................................................................................................7REFERENCES................................................................................................................................9
INTRODUCTION“If you’ve got an idea, start today. There’s no better time than now to get going. Thatdoesn’t mean quit your job and jump into your idea 100 percent from day one, but there’s alwayssmall progress that can be made to start the movement”. It is one of the famous quotes on equitycrowdfunding given by Kevin Systrom, co-founder of Instagram. Every business starts withsmall things and in order to grow it, different ideas are required but other than this, there is therequirement of funds. Crowdfunding is the term which is helping small businesses to grow. It isthe process in which start-ups get funds from public in the form of investments. This is a newconcept which was started in 1997 when fans of British rock band Marillion funded them fortheir tour of USA1. In this report, various aspects of crowdfunding will be discussed throughtaking example of Satellite Reign which is one of a finest video game site who attain successthrough crowdfunding and ALS Association campaigns. TASKCrowdfunding and the mechanism for Capital RaisingCrowdfunding is a process of raising capital through public and in other words, it is theway of collecting money from collective efforts of friends, family, consumers and the investors.It is the use of small amount of capital from a large number of individuals to finance certainenterprise. Through social media and crowdfunding websites, they bring a lot of finance from theinvestors and other entrepreneurs all together2. This has a great potential to expand the businessoperations and bring more investors. It is totally different from the corporate funding. If anyperson who wants to raise funds capital to start a business or introduce a new product, they needto develop a business plan, do some sort of market research and then show that idea to thewealthy people or parties. Funding through banks, venture capital firms, shareholders, etc. are1Brief Origin And History Of Crowdfunding. 2017. [Online]. Available through:<http://sparkup.co/blog/brief-origin-history-crowdfunding/?lang=en>.[Accessed on 5thSeptember 2017].2Schwienbacher, Armin, and Benjamin Larralde. "Crowdfunding of small entrepreneurialventures." (2010).1
the things which are utilised in traditional fund raising. But in case of crowdfunding, the ownerof business uses a single platform to show his or her ideas and share resource3. They use theirpersonal contacts to raise the funds or invest in front of interested people and parties and inreturn get funds because those individuals see some opportunities related to their profit. There are lots of benefits of crowdfunding over the traditional process and some of themare mentioned as below:-Reach: By the use of a particular crowdfunding platform, a company or individual canaccess a lot of investors and they can have interaction with the firm's owners and share theirfund-raising process. Presentation: This will benefit the organisation because in this procedure ofcrowdfunding, they have to design a presentation in which they will include all the details offirm like its history, services, target market, value proposition, etc. In this way, they can reviseall the things and update any particular area where there is scope of improvement4. PR & Marketing: From the initiation of campaign to the ending of it, companies canpromote their event through social media, email newsletters and by using different onlinemarketing techniques. As the media will be covering fund-raising program, firm can doubleonline traffic on their official website. 3 Ahlers, Gerrit K C, et. al., "Signaling in equity crowdfunding."Entrepreneurship Theoryand Practice39.4 (2015): 955-980.4 Belleflamme, Paul, Thomas Lambert and Armin Schwienbacher. "Crowdfunding:Tapping the right crowd."Journal of business venturing29.5 (2014): 585-609.2
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
An Analysis of Australian Crowdfunding Regulation: A Comparative Studylg...
|11
|2670
|172
Crowdfunding: Positives and Negativeslg...
|5
|776
|118
Business Law Assignment on Crowdfunding PDFlg...
|11
|2604
|48
The Method of Crowdfundinglg...
|10
|2679
|51
Regulating Crowdfunding in Australialg...
|10
|2195
|223
Commercial and Corporation Lawlg...
|12
|2376
|67