CROWDFUNDING

 Thanks to the fast developing technology, the Internet is used in nearly every business transaction. Nowadays, people have begun to control their business affairs via the Internet which gives them the opportunity to access their funds and investments easily. Crowdfunding,which is a form of investment and donation among business people, has become very popular these days. People who present their projects and do not have enough money to realize them ask a crowd of people to donate money. Before donatingmoney, an individual must consider the advantages and disadvantages of crowdfunding.

Undoubtedly, there are significant benefits that crowdfunding brings to both the project owner and donors. First of all, people may market their project easily, generate interest, and receive funds through crowdfunding platforms. Moreover, in order to attract the people’s attention, project owners can also share their campaign via social media. Secondly, since people share their ideas to persuade people to make a donation, they can often give feedback and expert guidance on how to improve it. In addition, in this way, people can realize what  the expectations and demands of the public and they have a cache to develop their project / product accordingly. Thirdly, if a person is struggling to get bank loans or traditional funding, the fastest way to raise financial support is crowdfunding.

Besides those strong benefits, there are some aspects of crowdfunding that may be harmful to both the financier and the owner. To begin with plagiarism, if a person has not protected his business idea with a patent or copyright, someone may see it on a crowdfunding site and steal the concept, so his endeavors may come to naught. Secondly, when people do not reach their funding target, investors may withdraw the money they donated and the other people may make a judgement against the project / product. Thirdly, as a result of failed projects, the reputation of one’s business might be affected to such a degree that owners may lose investor’s interest and trust permanently.

        In conclusion, the fast changes in technology make alterations in business practices. In today’s world, people find crowdfunding an attractive and effective way to make donations, investments and collect funds. When one decides to use this method, s/he must consider the advantages and disadvantages of it carefully because while simplicity in promoting ideas,assessing expectancy, and finding investors make crowdfunding essential, plagiarism, failure in reaching the target and eternal loss of public interest are serious shortcomings which may cause people to hesitate and change their minds about collecting fundingvia the internet.