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  • Essay / What is crowdfunding? - 651

    Crowdfunding involves obtaining funding/sponsors for a new project by attracting investors by sharing project ideas via the web. Crowdfunding involves raising a small amount of money from a large number of people (i.e. a crowd) by sponsoring money to encourage new people to develop projects with creative ideas . There are many platforms for sponsoring people for new projects, such as Kickstarter which provides funding for creative projects. projects. To get project funds from these platforms, the project creator must share their project with a video describing the project and the expected dollar amount. Then investors who will be interested in investing their money in this project will respond and provide funds. money for the project. I would like to discuss in this article about crowdfunding, things to know when someone wants to get into crowdfunding, Kickstart for funding, risks related to crowdfunding. In the initial days, if we want to start the new project, we could raise the money either by taking a loan from a bank or by lending money from family/friends. This is the only option with which we could start the new project/business. “Due to the global banking crisis, most banks in the UK were completely closed and some were bankrupt. This led to securing funding for new businesses. Then crowdfunding appeared to get their businesses off the ground.” (Coffer, David, 2013). Crowdfunding is not a new method of obtaining funding, we have had similar types of well known names like Mozart and Mark Twain raise money for the new project. There are various websites available in the restaurant/hotel space that use crowdfunding. Nowadays, restaurants and street food operators are dedicated to crowdfunding to improve middle of paper...... federal trademark application will be threatened if the same project/product which has the same set of rules and results and has been registered under the American federal trademark. Most crowdfunding websites do not mention the requirements in demonstrating the safety of the money spent by investors. These risks can make investors unwilling to invest money in new projects. Crowdfunding is the concept of encouraging new ideas from the new generation by providing them with means to finance their project. Although we have some problems in raising money from investors, innovative ideas and well-planned projects will create opportunities for those who want to start a new business/project. How to overcome the risks associated with crowdfunding? The US government has introduced a new law, i.e. everyone who wants to invent a new product/project in the market must register their own project development idea.