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It was copied here after Wikipedia editors deleted the article and remains here for posterity and archival. Back in the gold rush days, the smart people were not the ones heading for the hills to dig holes. Crowdfunding takes advantage of crowd-based decision-making and innovation, and applies it to the funding of projects or businesses. The creator must not only produce the product for which they are raising capital, but also create equity through the construction of a company. [8] Syndicates, which involve many investors following the strategy of a single lead investor, can be effective in reducing information asymmetry and in avoiding the outcome of market failure associated with equity crowdfunding. [21] Another kind of crowdfunding is to raise funds for a project where a digital or software-based value token is offered as a reward to funders.
Pages: 34
Publisher: CreateSpace Independent Publishing Platform (April 21, 2016)
ISBN: 1532888864
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