New Social Innovation Funding Source: The 'Crowd' Cesar Buenadicha and Elizabeth Boggs Davidsen - EconoMonitor
go to original December 29, 2015

TEDxVictoria - Victoria Westcott: Crowdfunding 101 (TEDx Talks)

In the journey from a revolutionary idea, to a start-up business, to an expanding business, it’s difficult for entrepreneurs and small and medium-sized enterprises to access the finance they need through the traditional channels of private capital markets. A new way to address this gap is crowdfunding - an innovative tool that enables entrepreneurs or enterprises in the early stages of the business development cycle to tap the financial resources of the online community.

Crowdfunding platforms provide a virtual space to connect entrepreneurs to potential funders in the “crowd” – the virtual community of people and resources that are connected through the Internet and digital technologies. Through these platforms, entrepreneurs can create campaigns to raise money for product development, operational expansion, or the launch of a new enterprise. Different platforms offer different crowdfunding models; contributions can be donations, or tied to specific rewards or products, or loans with interest rates and maturities, or represent an ownership stake in a private company (equity).

...A Mexico study was the first of its kind to provide research on a national crowdfunding ecosystem in an emerging market. According to the report, the major factors in this type of ecosystem are the local entrepreneurship culture, the size and potential of the market, technological advances and access to technology, a dynamic group of crowdfunding platforms, and the sophistication of potential investors. Advocacy organizations and the public sector also play a big role.

Read the rest at EconoMonitor

We invite you to add your charity or supporting organizations' news stories and coming events to PVAngels so we can share them with the world. Do it now!