What is Crowd Sourcing and What Does it Involve?

There are many entrepreneurs with fantastic ideas but are unable to start their own start-ups due to the shortage of the seed capital required initially. This is when crowd funding took birth to help those with great ideas so that they can see their ideas taking the reality shape. By crowd funding we mean that many individuals put in their resources and tools for the ideas initiated by other individuals. These days, one of the latest ways in raising the capital for a new venture is crowd funding. Many crowd funding sites are now available to help out those having a passion to be an entrepreneur.

Types of Fund Raising Projects

There are three types of fund raising projects. The first is when some individuals contribute to an idea with an agreement that they shall be given some exchange or a token of recognition. For instance, if they are contributing there resources for a manufacturing unit, they can ask for the discount whenever buying from that unit. Second type of fund raising project when people simply lend money to the individuals starting their own start ups and they are suppose to pay back the money along with some interest. Third type of crowd funding is when investors are willing to take risk and demand s a certain percentage share in the future profits of the company.

Source of Starting a New Venture

To ensure all of this, there are many crowd sourcing sites which are the best platform where the individuals meet and start different fund raising projects. Many firms have already taken lot of benefits from such sites and their business has taken a different shape altogether. This is one of the best medium which allows a creative individual to live his/her dream of becoming an entrepreneur.