Crowdfunding: Waker of Small Hidden Insignificant Funds?

Abstract

Crowdfunding has proved for a very short time to be a powerful tool to stimulate innovative entrepreneurship. Only original and quality projects and ventures that are good enough will be recognized by crowdfunders and get a chance of this alternative option to be funded with the money that will arrive from different parts of the world without any restrictions. Someone once said that the world is a global village, and crowdfunding as an innovative way of financing confirms that such a statement in many ways is true. Only in the last five years, individuals and companies have had the opportunity to raise billions of euros, dollars or pounds through different modalities of crowdfunding. We dare say that crowdfunding is one of the most exciting phenomena of networked globalization of which, however, very little is known. Therefore, this paper will explain several steps of the crowdfounding mechanism, its evolution and dynamics, as well as indicate many advantages of using crowdfunding both in developed and even more in developing countries.