Crowdfunding; Low Risk Finance for Businesses- A Comparative Study

PDF

Published: 2021-05-28

Page: 222-234


V. S. Abhilash *

CETSoM, Loyola College of Social Sciences, Thiruvananthapuram, India.

G. Raju

Government College for Women and Alisha Charuvila, CETSoM, Thiruvananthapuram, India.

*Author to whom correspondence should be addressed.


Abstract

Crowdfunding has arisen as a method of financing ideas and transforming them into projects, particularly those hard to fund in light of their suitable source of finance. Anyone can contribute monetarily, either to acquire a prize or unselfishly for the fulfilment of having worked together on a project. Subsequently, a twofold goal is accomplished, getting the account for its turn of events and at the same time acquiring customers, since customer and advertiser are a constant piece of the strategy in this kind of project. The depth of the risks section has no influence on funding success, so descriptions of potential risks are neither valued nor have a negative influence. The cost of capital is rising alarmingly and affects inversely on expansion, diversification and new ventures of corporates. Crowdfunding which is the result of modern technology can quench the scarcity of finance at lower risk. Founders who are active on the crowdfunding platform and also fund other projects have a higher chance of funding success compared to those founders who have not been active on the platform at present.

Keywords: Coheritability in Lentil, Crowdfunding, Lentil breeding, source of finance, Internet platform, cost of capital, project finance


How to Cite

Abhilash, V. S., and G. Raju. 2021. “Crowdfunding; Low Risk Finance for Businesses- A Comparative Study”. Asian Journal of Economics, Finance and Management 3 (1):222-34. https://www.journaleconomics.org/index.php/AJEFM/article/view/91.

Downloads

Download data is not yet available.

References

Bradford CS. Crowdfunding and the federal securities laws. Colum. Bus. L. Rev. 2012;1.

Belleflamme P, Omrani N, Peitz M. The economics of crowdfunding platforms. Information Economics and Policy. 2015; 33:11-28.

Mollick E. The dynamics of crowdfunding: Determinants of success and failure. In Social Science Research Network (SSRN); 2012.

Beaulieu T, Sarker S, Sarker S. A conceptual framework for understanding crowdfunding. Communications of the Association for Information Systems. 2015; 37(1):1.

Belleflamme P, Lambert T. Crowdfunding: Some empirical findings and micro-economic underpinnings; 2014.

Available:SSRN 2437786.

Bhargava A, Bhat R, Tiwari N, Student BLSLLB. Crowdfunding an Emerging Concept in India. International Journal of Legal Developments and Allied Issues. 2017;3:2454-1362.

Zeco S, Propfe D, Feltmate B. Crowd-funding for Sustainability at SMEs. In Academic Report; 2014.

Giudici G, Nava R, Rossi Lamastra C, Verecondo C. Crowdfunding: The new frontier for financing entrepreneurship?; 2012. SSRN 2157429.

Agrawal A, Catalini C, Goldfarb A. Some simple economics of crowdfunding. Innovation policy and the economy. 2014;14(1):63-97.

Rossi M. The new ways to raise capital: an exploratory study of crowdfunding. Inter-national Journal of Financial Research. 2014;5(2):8.

Tomczak A, Brem A. A conceptualized investment model of crowdfunding. Venture Capital. 2013;15(4):335-359.

Kappel T. Ex ante crowdfunding and the recording industry: A model for the US. Loy. LA Ent. L. Rev.2008;29:375.

Baumgardner T, Neufeld C, Huang PCT, Sondhi T, Carlos F, Talha MA. Crowdfunding as a fast-expanding market for the creation of capital and shared value. Thunderbird International Business Review. 2017;59(1):115-126.

Harrison R. Crowdfunding and the revitalisation of the early-stage risk capital market: catalyst or chimaera?; 2013.

Agrawal AK, Catalini C, Goldfarb A. The geography of crowdfunding (No. w16820). National Bureau of Economic Research; 2011.

Kappel T. Ex ante crowdfunding and the recording industry: A model for the US. Loy. LA Ent. L. Rev. 2008;29: 375.

Agrawal A, Catalini C, Goldfarb A. Some simple economics of crowdfunding. Innovation Policy and the Economy. 2014; 14(1):63-97.

Ahlers GK, Cumming D, Günther C, Schweizer D. Signaling in equity crowdfunding. Entrepreneurship Theory and Practice. 2015;39(4):955- 980.

Vismara S. Information cascades among investors in equity crowdfunding. Entre-preneurship Theory and Practice. 2018; 42(3):467-497.

Burtch G, Ghose A, Wattal S. An empirical examination of users’ information hiding in a crowdfunding context; 2013.

Schwienbacher A, Larralde B. Crowd-funding of small entrepreneurial ventures. Handbook of entrepreneurial finance, Oxford University Press, Forthcoming; 2010.

Gerber EM, Hui JS, Kuo PY. Crowdfunding: Why people are motivated to post and fund projects on crowdfunding platforms. In Proceedings of the international workshop on design, influence, and social techno-logies: Techniques, Impacts and Ethics. 2012;2(11):10.

Belleflamme P, Lambert T, Schwienbacher A. June. Crowdfunding: An industrial organization perspective. In Prepared for the workshop Digital Business Models: Understanding Strategies’, held in Paris. 2010;25-26.

Kuppuswamy V, Bayus BL. A review of crowdfunding research and findings. Handbook of research on new product development; 2018.

Mollick ER. Swept away by the crowd? Crowdfunding, venture capital, and the selection of entrepreneurs. Venture Capital, and the Selection of Entrepreneurs; 2013. (March 25, 2013).

Available:www.ketto.org

Available:www.wishberry.in

Available:www.catapoolt.com

Available:www.igniteintent.com

Available:www.start51.com