Crowdfunding, an emerging market in Europe?
What is crowdfunding?
Crowdfunding is a means of fundraising from the crowd, generally by using the internet.
Crowdfunding is becoming an increasingly popular way to connect entrepreneurs in need of financing, with investors–mostly retail investors–in search of various forms of returns ranging from pure profit to impact investing and even non-financial returns.
Historically, entrepreneurs used to face funding challenges when financing their start-ups as banks were not supportive of their innovative ideas. Often, their funding capacity was limited to personal savings complemented by whatever could be collected from direct family members and close relationships.
The development of the internet across our society has enhanced and accelerated communication and connections between people and communities sharing similar ideas. Entrepreneurs quickly understood its benefits and started advertising their innovative ideas through the net. Communicating about a project through the internet and financing the project through alternative funding channels and mass markets became a reality.
Inside magazine issue 9, June 2015
Inside is Deloitte’s quarterly magazine offering an exclusive insight into best practices, trends and opportunities faced by our clients across all industries.
Inside focuses on the main hot topics relevant for the market (Asset management, Banking, Insurance, Public sector, Healthcare, Private equity, Real estate, TMT, Manufacturing and consumer business, Transport and logistics).