Crowd Funding Report

Question: Describe about crowdfunding analysis and recommendations according to the research. Answer: Introduction Crowd funding is a process in which a large number of people contribute a little amount of their money to raise the finance. Until recently, a large quantity of money is asked from few people involves the process of financing project or business, but crowdfunding uses the internet to connect to millions of people for funding. These funds help in setting up a website or project which are run by the members of the organization. Social media, the network of friends that are used traditionally, can be used to raise money. Modern crowd funding process involves a mostly use of social media. Researcher's suggested that the money can be given to creators or funders who perceive the field as more valuable. Alternative finance which has come out of the traditional finance system is a form of crowd funding( Kirby. and Worner 2014) Discussion Crowd funding is very much useful for the producers providing some benefits which can be financial or nonfinancial. As stated by Belleflamme et al. (2013).Non-commercial profits of crowdfunding include- i) A possible project helps in raising the profile of the producer as well as assist in boosting up their reputation. ii) The project started by an initiator can show the audience and market for their project which will be helpful in case of unsuccessful condition, it can provide market feedback. Iii) A forum is created by project initiators to connect with the audiences, and they are engaged in production by taking updates from creators and sharing feedback by commenting on the crowdfunding page. Iv) feedback from the readers helps the project initiators in accessing the market or testing feedback from the market( Mitra 2012). There are many financial benefits from crowdfunding. It helps the creators in attaining low cost capital. Earlier a producer has to take help from family and friends, home equity loans, savings that are made for personal reasons, etc. but with the help of crowdfunding, creators can find the funders from throughout the world (Shiller 2013) Crowd funding is a sector that is still developing throughout the world. It is a platform that helps the small business a start-up by getting funds. Investment is mainly made through online platforms. According to UK Crowdfunding Association, there are mainly three types of crowdfunding which are debt, equity, and donation. Donation crowd funding primarily deals with investment and people invests money because they believe in a cause. Free gifts, albums, regular updates of news can be offered as a reward. Donors have either social or personal reason behind the investment of money. They do not expect anything in the return of their money; their only motive is to help the projects to feel good( Belleflamme et al. 2014.) Debt crowdfunding mainly deals with investors who took their money back with interest. Debt Crowdfunding is also known as peer to peer lending. In debt crowd, funding investors invest their money to creators to provide help in their projects and return they get their money back with some additional interest. When the money is lend to a poor, often in developing countries, they interest on the invested capital is not calculated and they are helped in their projects and sometimes the process is known as microfinance( Bruton and Wrigh 2015). Equity crowdfunding deals with the idea that people mainly invest to get an opportunity for exchanging the ownership. Most often, money is transferred to projects, ventures, etc. for a share. If the value of a stock goes up then, money continuously increases, on the other hand, if the value of a share starts decreasing, then an investor can lose their money altogether( Ahlers et al. 2015) Crowdfunding is very much useful for both the creators and an investor, and it does three things well. They are-i) Announces the idea publicly- It provides a platform to communicate and announce the opinions publicly which will be valuable as well as necessary. Ii)The network gets leveraged- It helps or allows to syndicate the shareable profile to friends, or to friends of friends to acquire profit. So, in this way, crowdfunding provides benefit to its investors. Iii)Fundraise coordination- It proves to be a central point in providing all its support in a short period that is within 30 to 90 days. After then funds are collected from the supporters. Crowdfunding analysis and recommendations according to the research: The research work is described here as the measurement through the analytical platform of Crowdfunding aspects in Brazil. The study of the above mentioned facts mainly suggests that the how in the competitive market the ecosystem for the business is getting operated and linking itself to their significant strategies (Carvajal et al. 2012). The analysis of the crowdfunding aspect results to two questions- The positioning of the crowdfunding companies in the business ecosystem How they operate the crowdfunding strategies in the business ecosystem properly. Methodology: The different views collected from the various case studies, the accumulated steps are those which is very crucial for the analysis of the crowdfunding aspect are, Analytical aspect of contextual definition Selection procedure of the case The interview protocol for the data collection system. Analysis of the data Description of the researched data Selection of case: The event of the cross-funding companies of Brazil is chosen as the first instance for the analysis purpose. Her two main criteria are highlighted- The sector of arts and entertainment is considered for the analysis, as it has the no issues to discuss. For having, at least, a year of experience for the for the interview. The companies which are selected for the analytical purpose are, Mobz, which is offering the scopes for the having the live view of the sports, and other events. Next company is Queremos, which is providing the brand name and fan support the happenings. The third one is Catarse, it takes part in the project arts. Collection of data: The data for the analysis is a compilation of the data from the interviews and websites, and the documents provided by the internal sources and the coverage area of the press. The coverage area for the media gives the information about the company resources in details. The protocol view of the interview: The protocol view of the interview perspective is discussed here. Data analysis: By the software support approach the contextual information is recorded divided into ten aspects, a) networking effect of the social media, b) shows happened, c) motivational aspect of the user, d) CRM, e) versioning of the content, f) incentives for the participants, g) margining, h) leading of time, i) critically evaluated mass. From all these aspects the data is correctly taken and then it is compared with care to get the viewpoint of the character. Result approach: To get the proper results, it is mandatory to obtain the results in an organized manner. This is achieved by the detailed view of the ecosystem. The data from the three companies are compared in each step of the judgment. Judgmental view point of the Crowdfunding approach: In any analysis, there is always some benefits factors and risk factors for the research. The benefit and risk factors are discussed here- The non-financial advantages of the Crowdfunding are- A) profile: a right pattern supports the organizer to get the reputation. B) marketing approach: for the launching of the product in the market, it is crucial to have right plan about the market. C) management of the customers is another good aspect which is gained by the Crowdfunding approach (Gerber and Hui 2013). Risk factors of the Crowdfunding: Loss of reputation: by not delivering the project on time because of failure of the campaign missions is one danger in the Crowdfunding. Protection of IP: before the product is launched in the market the idea behind it sometimes get the leak out in the market, which is another cause of failure of the missions of the Crowdfunding. Exhaustion of the donor party: If the same network supporters are contacted several times, then the risk factors increased. Abusive behavior of the public: Without maintaining a regulation of the work culture, the scam can be happened to the fund of the organization (Davidson and Poor 2015). Conclusion: The research work ends with the view that the crowdfunding approach gives the platform to arrange huge numbers of critical events, it can generate new demands for the customers by the assessment of the suggestive of the critics. According to the data retrieved for the company Mobz and Queremos, both of this company have the approach of optimization of the good aspects of business. This type of approach leads to the connectivity between the value of the product and the quantification of the companies. According to the research, it is found that Brazil is financially stable enough as it has the support of Crowdfunding approach (Mollick 2014). Though the Crowdfunding has some negative aspects as well as some positive side, it is quite better to raise the finance and in bringing the product to the market. By the support of Crowdfunding the users can get supportive aspect in possible manner and the investor looks from the single angle can get proper value (Belleflamme et al. 2013). Reference: Ahlers, G.K., Cumming, D., Gnther, C. and Schweizer, D., 2015. Signaling in equity crowdfunding. Entrepreneurship Theory and Practice, 39(4), pp.955-980. Belleflamme, P., Lambert, T. and Schwienbacher, A., 2013. Individual crowdfunding practices. Venture Capital, 15(4), pp.313-333 Belleflamme, P., Lambert, T. and Schwienbacher, A., 2013. Individual crowdfunding practices.Venture Capital,15(4), pp.313-333. Belleflamme, P., Lambert, T. and Schwienbacher, A., 2014. Crowdfunding: Tapping the right crowd. Journal of Business Venturing, 29(5), pp.585-609. Bruton, G., Khavul, S., Siegel, D. and Wright, M., 2015. 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