Crowdfunding – a boon or bane

According to SEBI, Crowdfunding shall be defined as solicitation of funds (small amount) from multiple investors through a web-based platform or social networking site for a specific project, business venture or social cause. SEBI is currently in the process of establishing regulations on crowdfunding. Once this picks up, it will be a boon to the SME/early-stage startups to raise funds from small-time investors. Types of crowdfunding: Social/Donation crowdfunding Reward crowdfunding Peer – to – peer lending Equity crowdfunding The first two shall be social funding and last two shall be financial return funding. Social media is going to play a...

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