A Study on the Financial Investment Implications and Effects of Crowd Funding for Start-ups

Abstract

For the smooth operation of its daily operations, every business needs money. The component of the investment of money is so essential that its absence causes the progress of trade and commerce to halt. It is reasonable to refer to funds as the lifeblood of all trade. Finance makes it possible to access all necessary sources for managing the corporation. The settled entities find it easy to raise cash. It is far simpler for them to maintain it than for freshly founded businesses to begin from scratch. A venture financing agreement is essential for the success of any new business. This endeavor is quite difficult since there is no history of strong revenues andlittle guarantee. Therefore it isn’t easy to secure financial backing. It is almost as if it were impossible. Crowd-funding, a relatively new method of financing, is gaining popularity in India, particularly among enterprises that lack access to funds. The study focuses on the literature review to investigate the impact of crowd-funding in providing financial support for projects and gives potential areas for further research. The thorough secondary data assessment demonstrates the critical significance of crowdsourcing in the success of a new business venture and argues for specific attention on simplifying the fundraising procedure.