Crowdfunding; Low Risk Finance for Businesses- A Comparative Study
V. S. Abhilash *
CETSoM, Loyola College of Social Sciences, Thiruvananthapuram, India.
G. Raju
Government College for Women and Alisha Charuvila, CETSoM, Thiruvananthapuram, India.
*Author to whom correspondence should be addressed.
Abstract
Crowdfunding has arisen as a method of financing ideas and transforming them into projects, particularly those hard to fund in light of their suitable source of finance. Anyone can contribute monetarily, either to acquire a prize or unselfishly for the fulfilment of having worked together on a project. Subsequently, a twofold goal is accomplished, getting the account for its turn of events and at the same time acquiring customers, since customer and advertiser are a constant piece of the strategy in this kind of project. The depth of the risks section has no influence on funding success, so descriptions of potential risks are neither valued nor have a negative influence. The cost of capital is rising alarmingly and affects inversely on expansion, diversification and new ventures of corporates. Crowdfunding which is the result of modern technology can quench the scarcity of finance at lower risk. Founders who are active on the crowdfunding platform and also fund other projects have a higher chance of funding success compared to those founders who have not been active on the platform at present.
Keywords: Coheritability in Lentil, Crowdfunding, Lentil breeding, source of finance, Internet platform, cost of capital, project finance