Overview Of Crowd Funding In India

Abstract

Crowd funding is the process of raising essential amounts of funds from a large number of people to launch a new business initiative. It is typically accomplished by connecting investors and entrepreneurs through social media and crowd funding platforms, with the potential to boost entrepreneurship by broadening the pool of investors outside the conventional circle of owners, relatives, and venture capitalists. Although the crowd financing market is only a few years old, it has quickly become one of the most popular ways to raise funds. This enables entrepreneurs to avoid the traditional banking system. Banks have been more reluctant to lend to small firms, particularly in the aftermath of the financial crisis. This has made it difficult for many entrepreneurs to secure the funds they require to establish or grow their firms. Crowd funding not only gives prospective entrepreneurs with the capital they need, but it also validates their ideas and helps them develop a network of early adopters and supporters. Collective contributions have enabled inventive entrepreneurs to bring their ideas to life. This research study presents an outline of crowd funding's current position and prospects as a source of financing for Indian enterprises.