Crowdfunding: raising small sums of money online to finance young companiesby hvca
Economist, June 16, 2012
Crowdfunding websites help anyone with an idea to ask the crowd for small sums of money that, added up, can bring young companies to fruition. A report forecasts that $2.8 billion will be raised worldwide this year. There are over 450 “crowdfunding platforms” worldwide. Kickstarter and Indiegogo secured the biggest chunk of venture capital so far for crowdfunding. Crowdfunding is well suited to industries that create intellectual property and it is a good way to test consumer demand.