the role of crowdfunding to financing capital for startups Entrepreneur
Subject Areas : Technology Management
Keywords: Crowdfunding, Financing, venture capital, Platforms, Social networking, , , ,
Abstract :
financing capital for startups, always had been propounded as one of the challenges for entrepreneurs. On the other hand, because of the risk of venture capital investment, financial institutions and banks often show less willing to invest in this activity. By developing Internet and social networks, limitation in communications have been removed and new concepts such as networking and utilization of crowdfunding has been raised. This paper introduces a new method of collective investment fund over the Internet to exploit social capital rather than bank loans, business angels and venture capital. Due to the lack of scientific research in this field, by using inductive method we discuss about the crowdfunding phenomenon concept, development of literature in this field, goals and motivations of the participants, expressing the models, potential, obstacles and limitations of the crowdfunfing. The results indicate that the rate of this concept in the world especially in developing countries has been increasing, and this model can be operated by providing cultural, technological, legal and social contexts.