Crowdfunding

• Large number of problem usually via the internet raise money
• 3 ways to fund is donate, lend and invest
• Common source for start up business
• New ideas out on a crowdfund website and the details are made publicy so anyone can see them and contribute to the dining
• Rewards can be offered to donors such as early aces to a product or it being discounted
• Pro- good alternative to loans for small businesses owners
• Pro- finance can be obtained without paying upfront fees
• Pro- business raises awareness of its product as It’s on a crowdfund website leading to a increase in sales
• Cons- business idea is public and can be copied and if the business idea fails lots of people will be aware of it leading to a decrease I’m reputation