Study Notes

Crowdfunding

Level:
AS, A-Level
Board:
AQA, Edexcel, OCR, IB

Last updated 22 Mar 2021

Crowdfunding is an alternative method of raising equity finance for a business, project or idea.

Unlike business angel investment, in which one person typically takes a larger stake in a small business, with crowdfunding an entrepreneur or business can attract a ‘crowd’ of investors – each of whom takes a small stake by contributing towards an online fundraising target.

The concept of crowdfunding is explained further in the video below:

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