Individual investors who pool their financial resources and efforts and start a business typically online business is called crowd funding. The basic methodology is based on the fact that every wonderful idea of yours can be shared across the web and be utilized to get funds from investors and your dream project is funded. Most of these initiatives are based on social awareness, education, employment training and social enterprise.
There are lots of questions arising on the difference between crowd funding and capital ventures. Basically, Crowd funding involves lower cost, greater creativity and is non-traditional while capital ventures are more stable resources. Under the jumpstart law, small businesses are funded and encouraged to start with the help of funding from investors.This law permits entrepreneurs to raise a capital of more than one million dollars through crowd funding where in investors invest their money. Some of best examples of crowd funding that have proven to have worked are hyde park body boutique, book of wonders, veronica mars movie project and many such projects. Most of these projects were unable to get traditional funding and therefore they crowd funded investors and were successful in accumulating from nine thousand dollars to forty six million.
Crowd Funding Infographic submitted by Best Infographics