IntroductionNew technological advancements have led to the emergence of many innovations in the field of business. Most often, the individuals or groups who come up with these ideas and innovations do not have enough funding for their projects and businesses. Such situations push them to look for better lending and financing organizations to achieve the set goals. They can acquire funding through bank loans, family members, partnerships, businesses, venture capital firms, grants and other funding agencies. Most start-up businesses may be facing a financial crisis or may want to expand to meet consumer demands that require financing to continue operations and expansion. This research explores whether businesses, particularly start-ups, can rely on crowdfunding as a substitute for venture capital firms. Crowdfunding is the case where individuals form a network that raises the expected amount to learn a trade in a commercial enterprise. This type of financing is common in financing projects such as disaster management and control, financing political campaigns, scientific research, and supporting the art industry. Theories applied to such projects can be used in a business environment where shares are sold to many investors. These individual investors benefit from the payment of dividends as shareholders of the project. This research paper will evaluate whether individuals may be willing to invest their finances in a start-up business to gain a share of the company's equity.1.1 HypothesesThe author hypothesizes that crowdfunding would be an alternative source of capital viable if the general public has the capacity to raise enough money and they are willing to give it to entrepreneurs who start businesses in exchange...... middle of paper ......owdsourcing.org, 2012. DeMaria, Scot Steinsburg & Russell. The Crowdfunding Bible. README, 2012.GPO. “One Hundred and Twelfth Congress of the United States of America.” Authenticated information from the US government. Washington: United States Government Printing Office, 2012. 22. Hastings, Paul. “Demystifying the recently adopted reforms in crowdfunding and private offering.” Stay up to date. April 2012. https://www.secondmarket.com/discover/wp-content/uploads/2012/01/Stay-Current-Demystifying-the-Recently-Enacted-Reforms-Paul-Hastings.pdf (accessed August 19, 2012 ).Zider, Bob. “How Venture Capital Works.” December 1998. https://notes.utk.edu/units/biz/macc/MAccCal.nsf/0/36abe202e19e223e852571370060c1a7/$FILE/Venture_Capital_Overview.pdf (accessed 08/18/2012). Idaho SBDC (Small business development center). “Guide to starting a business. » Boise. Boise State University, 2011.