crowdfunding

•  What is crowdfunding?

  When individuals are able to invest in a business in return for a share of their business.
• Advantages of crowdfunding?

  Creates an organic customer base - Customers come naturally

  The platform provides a form of free marketing

  A good credit rating is not required so new businesses that lack a trading record can attract funding
• drawbacks of crowdfunding

  Businesses need to provide a persuasive plan to convince the individuals to invest as they will be competing against others

  Potential for negative publicity - if the business is not successful in attracting enough crowdfunding capital