The benefits of online crowdfunding for fund-seeking business ventures

Crowdfunding through Internet platforms is a new phenomenon allowing small business ventures to raise capital from a large number of private individuals, the so-called ‘crowdfunders.’ Crowdfunding can offer a variety of financial and non-financial benefits to fund-seeking business ventures. Financially, it helps small companies to overcome funding difficulties and it facilitates access to further financiers while allowing businesses to raise capital with limited or no loss of ownership and control. In terms of non-financial benefits, crowdfunders can provide value-added involvement and feedback creating, at the same time, publicity and public awareness of the business, and new potentially useful contacts to the business.