Question

Explain crowdfunding as a source of finance for a business venture.

Answer 1

• Crowdfunding is the process of collecting small amounts of money from many individuals, typically through websites such as Indiegogo, Kickstarter, or GoFundMe.
• It enables companies to validate their products or services before they reach the market and to reach a large audience.
• Depending on the project’s nature and the company’s objectives, crowdfunding can take various forms, including debt-based, equity-based, rewards-based, and donation-based models.