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another opportunity to gain financial support from others. The use of crowdfunding has gained an increased presence since the JOBS Act and has a significant social media presence. "Approximately 25 percent of real-world relationships start online, with people of all ages migrating online to find a partner. Crowdfunding is doing for small businesses and entrepreneurs what dating sites have done for singles." Those unable to procure funding from traditional methods may be interested in pursuing crowdfunding as an option; however, the success rate may be a deterrent. E. Mollick examined
Kickstarter projects from 2009 through 2012 and found many projects were not successful as only "3% raise 50% of their goal," and he stated that successful projects succeed "by relatively small margins."
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can give to individuals or organizations anywhere in the world. Once a fundraiser is created, individuals can share the details anywhere to attract donors and gather funds for their cause.When it comes to motives, donations are made to individuals to help them reach a goal and typically drop off once that is met; however, donations to organizations are made for a greater societal good. The demographics of online donors vary from traditional donors as "online donors tend to be younger and give larger gifts than traditional donors." This is important for online campaign organizers to note as they determine their target audience; however, those over 50 have increased their social media usage and have a presence on
Facebook.
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businesses, or donations for a specific purpose (e.g., to pay for a medical procedure). Crowdfunding usually takes place via an online portal that handles the financial transactions involved and may also provide services such as media hosting, social networking, and facilitating contact with contributors. It has increased since the passage of the
Jumpstart Our Business Startups (JOBS) Act.
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This is known as "Peer to Peer", "P2P", "marketplace lending", or "crowdlending". Borrowers set up campaigns to fulfill their financial needs, and lenders contribute toward the goal for an interest. This method of online funding may prove to be "a threat to the traditional banking system in the areas
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Funds may be sought out to start a business, to support a cause, or to reach a fundraising goal. Most crowdfunding projects are small and "seek to raise small amounts of capital, often under $ 1000." An individual or organization may not qualify for a traditional bank loan, and crowdfunding provides
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Crowdfunding has a wide reach and may be utilized by businesses, nonprofit organizations, an individual, group, or an organization. Crowdfunding is used in a variety of platforms from social media to face-to-face environments. The use of crowdfunding has increased; however, success is not guaranteed.
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Online crowdfunding donors differ from traditional fundraising donors in that donors give anonymously, do not have a connection to the recipient, and donors may seek out a cause or recipient to give to. Another important factor is that online donors are not limited by their geographic location and
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Crowdfunding is donation-based fundraising for businesses or creative projects, typically via an online funding portal. Some but not all crowdfunding projects offer contributors rewards, which may differ based on the amount of money donated. Rewards can include copies of a creative work, products
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More research is needed in regard to the topic of crowdfunding in general. There are benefits to online crowdfunding as it has the ability to tap into audiences that are not close in geographic proximity to an individual or organization and to increase awareness about a campaign. However, with
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This mode, also known as "non-equity" funding, has become increasingly popular, with a 230 percent increase in 2012. Reward-based crowdfunding may fund campaigns supporting the free development of software, the promotion of motion pictures, scientific research, development of inventions, etc.
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is a process in which individuals or groups pool money and other resources to fund projects initiated by other people or organizations "without standard financial intermediaries." Crowdfunded projects may include creative works, products, nonprofit organizations, supporting entrepreneurship,
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People make donations for different reasons and give to different entities. Donors may give to feel good about themselves or because they believe in a cause. Some donations are made to individuals while others are made to organizations. The same is true in online crowdfunding. However, some
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in the resulting business. It is a joint effort made between individuals to support the causes of other people or organizations in the form of equity. Contributors may act as investors and receive shares directly, or the crowdfunding service may act as a
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of 2012 regulated the trend. This "legislation was intended to increase access to capital for the innovative companies" in need of investment capital and allows a pool of small investors to come together. The
Regulation was updated in 2021 by the
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This type of crowdfunding "is part of a trend in which people are relying less on charities to help them fulfill their philanthropic aims". The best example might be raising funds from individuals to support personal or social causes.
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relatively low funding success rates reported, "social networking and traditional approaches to fundraising may be complements" to help individuals and organizations raise funds but not a replacement."
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Equity crowdfunding helps "the 90 percent of businesses that were left out in the cold" by traditional funding methods, which is why it has become such a viable option for business startups.
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of consumer and business loans, as has already been demonstrated by the rapid success of online lending marketplaces."
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Gleasure, Rob; Feller, Joseph (2016). "Does Heart or Head Rule Donor
Behaviors in Charitable Crowdfunding Markets?".
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allowing companies to up to $ 5 million per year from unaccredited investors and allowing investors to invest more.
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The future of fundraising: Is crowdfunding the wave of the future?
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Equity-based funding is illegal in many countries, such as
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Corporate
Finance Review. Vol 18, issue 1, pp. 27–31.
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Is crowdfunding now a threat to traditional finance?
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The dynamics of crowdfunding: An exploratory study.
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353:Journal of Business Venturing. Vol. 29, pp. 1–16.
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151:Learn how and when to remove this message
509:Nonprofit and Voluntary Sector Quarterly
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389:"The Beginners Guide To Crowdfunding"
100:"Comparison of crowdfunding services"
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436:"SEC.gov | Regulation Crowdfunding"
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240:. In the United States the
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253:Reward-based crowdfunding
216:Equity-based crowdfunding
202:Reward-based crowdfunding
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39:latest accepted revision
271:Litigation crowdfunding
262:Debt-based crowdfunding
208:Litigation crowdfunding
205:Debt-based crowdfunding
191:promotional merchandise
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573:Africa & West Asia
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18:Crowdfunding websites
616:Article One Partners
349:Mollick, E. (2014).
316:Peer-to-peer lending
85:improve this article
626:The Audience Engine
580:Bir Silgi Bir Kalem
371:Hollas, J. (2013).
321:Equity crowdfunding
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184:Crowdfunding models
29:Page version status
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1019:CrowdFundEDU
1004:Bountysource
999:Blackstartup
963:ShareTheMeal
933:Innovestment
877:VentureCrowd
840:Asia-Pacific
721:GlobalGiving
661:Crowd Supply
656:CrowdJustice
565:Crowdfunding
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83:Please help
78:verification
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37:This is the
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1079:PledgeMusic
1054:Lone Signal
918:DigVentures
857:Impact Guru
756:Kickstarter
736:Groundfloor
621:ArtistShare
445:October 24,
440:www.sec.gov
141:August 2015
1177:Categories
1162:Comparison
1064:Neighborly
948:Planeta.ru
928:FundedByMe
908:Companisto
816:SeedInvest
791:Piggybackr
766:LaunchGood
746:InvestedIn
716:GiveSendGo
696:Experiment
646:CommonBond
631:Change.org
515:(5): 850.
483:(4): 499.
393:milaap.org
332:References
111:newspapers
1134:YouCaring
1129:TrustLeaf
1099:Sellaband
1094:RocketHub
1059:Mobcaster
1029:Fundageek
968:Spacehive
943:Liberapay
913:Crowdcube
903:Bergfürst
882:Wishberry
741:Indiegogo
731:GoyFundMe
691:EquityNet
671:Crowdrise
611:AngelList
590:Headstart
567:platforms
398:April 16,
1152:Category
1119:Tilt.com
1109:Sponsume
1074:PieShell
1069:Offbeatr
1049:Junction
1039:@HopeMob
1024:Fondomat
978:Zinsland
938:Invesdor
898:Beesfund
867:PledgeMe
862:MusicBee
831:Wefunder
801:Republic
726:GoFundMe
711:FundRazr
681:DonorSee
676:DonorBox
666:Crowdpac
636:CircleUp
604:Americas
595:OurCrowd
310:See also
242:JOBS Act
43:reviewed
987:Defunct
958:Seedups
872:Pozible
852:Birchal
826:Wedidit
781:Patreon
585:Eureeca
125:scholar
973:Symbid
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891:Europe
847:Asiola
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706:Fundly
641:Classy
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238:India
132:JSTOR
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