Crowd Funding: Organizing Finance the New Way

Abstract

Financing is an essential element for running any organization without which an organization cannot even be created. With many new organizations coming up and foreign companies entering into the market competition has touched its peak. This is valid even for scenarios where companies have to face a cut-throat competition to get the investors for themselves. New and booming startups have to compete with already establish companies where they are generally less preferred as an investment option by the investors who eventually choose big companies because of their return. Thus, new methods of financing such as crowd funding are making their way into present day business environment. Crowd funding has been positioned as a viable option in line with traditional methods of financing such as venture capitalism and angel investments. Crowd funding has gain popularity among new and inexperienced entrepreneurs and for getting money to carry out social, cultural and environmental projects. Various crowd funding platforms have come up with different pricing and operational strategies.