What is Crowd-Funding?
Crowdfunding is a method of raising large funds from various sources i.e, friends, family, individual Investors etc. Crowdfunding is the source of collecting big funds in large numbers of people.
Crowd-Funding Advantages and Disadvantages
Crowd-Funding Advantages for Investors
- It reduces the risk of Investment.
- It is beneficial for the long-term.
- It does not require a high amount of investment.
- It helps the investor to understand the taste of the future.
- It provides a high ROI on investment.
Disadvantages of Crowd-Funding for Investors
- It is futuristic, So it has a high probability to kill the investment.
- Crowd-Funding needs many people to start the project, sometimes producers close the program. Because not getting investment.
- Sometimes Investors do not get a good return on investment.
- It has a fair loss of investment.
Advantages of Crowd-Funding
- Business does not need to give a high return on Investment.
- It is the risk-less process of collecting funds.
- it is a good way to test the public reaction to your product/idea.
- Business can convert their Investors into Customer.
- it is the best alternative to Bank loan.
Disadvantages of Crowd-Funding
- It is time taken process.
- It is hard to get many investors.
- Hard To win Investors trust.
- If the project fails, it affects the whole image of the business.
- It discloses the private decisions of the business.
- It has higher chances to fail.