Topic > What is crowdfunding? - 651

Crowdfunding consists of obtaining funding/sponsors for a new project by attracting investors by sharing one's project ideas via the web. Crowdfunding involves raising small amounts of money from a large number of people (i.e. the crowd) by sponsoring money to encourage new people to develop projects with creative ideas. There are many platforms for sponsoring people for new projects such as Kickstarter which provides funding for creative projects. To get funds for the project from these platforms, the project creator must share his project with a video describing the project and the expected dollar amount of money, then investors who will have interest in investing their money in that project they will respond and provide some money for the project. I would like to discuss in this document about crowd funding, Things to know when someone wants to start crowd funding, Kickstart for funding, Risks involved in crowd funding. In the early days, if we want to start crowdfunding new project, we could raise the money by taking a loan from the bank or borrowing money from family/friends. These are the only options with which we could start the new project/business. “Due to the global banking crisis, most banks in the UK were completely closed and some were closing. This led to obtaining financing for new businesses was impossible. Then crowdfunding came out to get their businesses off the ground." (Coffer, David, 2013). Crowdfunding is not a new method of getting funding, we have had similar types of well-known names like Mozart and Mark Twain to raise funds for the new project. There are various websites available in the restaurant/hotel industry that use crowdfunding. Nowadays, restaurants and street food operators engage in crowdfunding to improve the... middle of paper......federal trademark application will be at risk if the same project/product that has the same set of rules and results and has been registered as a US federal trademark. Most crowdfunding websites do not mention the requirements showing safety for the money spent by investors. These risks can make investors not want to put money into new projects. Crowdfunding is the concept of encouraging new ideas from the new generation by providing ways to finance their project. Even though we have some problems in raising money from investors, innovative ideas and well-planned projects will create opportunities for those who want to start a new business/project. How to overcome the risks of crowdfunding? The US government introduced a new law, e.g. anyone who wants to invent a new product/project on the market must register their project development idea.