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What is Crowdfunding?
Crowdfunding is an alternateapproach to get investments for a start-up. Wikipedia denes crowdfunding as an approach to raising the capital required for a new project or enterprise by appealing to a group of people ( guratively, "the crowd") for contributions om one or many. When such an appeal is global it is mass funding. Crowdfunding is not actually a new idea, as it has been developed over the last decade mainly in the lm and music industries. Unlike traditional models which rely on large contributions from one or two institutions,crowdfunding is based on raising small sums from many people. Instead of raising 300,000 from three angels (100,000 each), you collect 10,000 from 30 private investors. Crowdfunding isnt going to replace venture capital, private equity, debt nance or stockmarkets. In many ways its an evolution of friends and family and angel models, just operating with greater transparency and on a larger scale. It may even turn out to be an essential and complementary part of the nancing tools needed to cultivate and grow new businesses.
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