Entrepreneurial Finance, Fourth Edition: Finance and Business Strategies for the Serious Entrepreneur, 4th Edition

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Crowdfunding

Introduction

One development that demands the attention of all entrepreneurs is crowdfunding.. A crowd is defined by the Macmillan Dictionary as “a large number of people in the same place.” But a crowd can also be people who have a common purpose. This is the foundation of crowdfunding—when a group of people join in the effort to fund a common project. Using the power of social media, entrepreneurs can take advantage of the potential energy and resources of crowds.

For example, less than 24 hours after David Henneberry’s boat had been ruined in Massachusetts, a total stranger from Texas named Craig Dunlap started a campaign on Crowdtilt.com titled: “Let’s Fix David Henneberry’s Boat (That Got Ruined in the Boston Bomber’s Standoff)!” ...