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The effect of crowd in fund-raising

One of the basic concerns of entrepreneurs is about how to access money for their operations. There are several options; however, depending on the country that the entrepreneur resides, the accessibilities differ. Traditionally, bootstrapping method and asking for money from friends and families were the dominant approach. Then, bank loans, angel investors, and venture capitals became a second option for absorbing money. However, the progress of new technologies brought about positive effects even in this domain. Thus, while people are overwhelmed with yearly (even monthly) advancements, they engage with them more and more.

One of the positive effects is the possibility of getting informed about an innovative solution that meets the needs of humans. However, from the supply side, entrepreneurs always challenge with fund-raising approaches. The internet was a miracle to fill this gap. It gave platforms to entrepreneurs to increase the awareness of potential consumers about what they desire to have.

The only missing puzzle is to find who can invest or risk their money for the solution that entrepreneurs provide on crowdfunding platforms. Even though crowdfunding was primarily thought to democratize investments, recent findings do not confirm this.