A naukri.com initiative
Medium
4w
401
The Rise of Crowdfunding: How It’s Democratizing Investment
- Crowdfunding has become popular in the investment landscape and has revolutionized how startups raise capital.
- There are two types of crowdfunding; equity crowdfunding gives investors shares, while reward-based crowdfunding allows people to buy products from a company that is in its initial production cycle.
- Crowdfunding has allowed people to invest in real estate, art, and other industries, democratizing opportunities once restricted to a select few.
- Although crowdfunding has been beneficial for many companies, there are also risks associated with investing, such as lack of liquidity and high failure rates.
- Startups such as Oculus VR and Allbirds have successfully raised capital on crowdfunding platforms.
- New platforms such as Masterworks allow individuals to invest in high-quality artwork for as little as $500.
- Crowdfunding has had a social and economic impact, enabling individuals from diverse backgrounds to finance their dreams, contributing, and generating funds for their philanthropic efforts.
- Crowdfunding has the potential to reshape global sectors, ushering in new opportunities for economic growth and societal impact.
- Increased inclusivity and transparency make crowdfunding a valuable resource for both investors and entrepreneurs.
- The failure rate of crowdfunded businesses or campaigns is high, ranging between 60% to 70%.
Read Full Article
24 Likes
For uninterrupted reading, download the app