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CROWDFUNDING


This is a method of mobilising finance/fund. Crowd-funding refers to the collective effort of individuals who pool money—mostly through the Internet

—to support start-ups. There are two basic forms of crowdfunding

—’community’ crowdfunding and ‘financial return’ crowdfunding. The former includes donation-based concepts (donators get no financial retuns in it) while in the latter contributors of funds get financial returns (from the project set up with the fund). In the financial model of crowdfunding, contributors might be given equity/share in the upcoming project.