Crowdfunding's Potential for the Developing World
Crowdfunding is an Internet-enabled way for businesses or other organizations to raise money in the form of either donations or investments from multiple individuals. This new form of capital formation emerged in the wake of the 2008 financial cris...
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| Language: | English en_US |
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Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2013/01/18806928/crowdfundings-potential-developing-world http://hdl.handle.net/10986/17626 |
| Summary: | Crowdfunding is an Internet-enabled way
for businesses or other organizations to raise money in the
form of either donations or investments from multiple
individuals. This new form of capital formation emerged in
the wake of the 2008 financial crisis largely because of the
difficulties faced by artisans, entrepreneurs and
early-stage enterprises in raising funds. Crowdfunding takes
advantage of crowd-based decision-making and innovation, and
applies it to the funding of projects or businesses. Using
social networks, social profiles, and web-based
communication, individuals and companies have raised
billions of dollars in debt, equity, and donations for
projects. Building a crowdfunding ecosystem depends on key
enablers to build trust. This document explores specific
strategies to drive crowdfunding, the risks in crowdfunding
and how to mitigate them, and the potential use of
crowdfunding in the developing world. |
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