Question

1. What are the key determinants of compelling crowdfunding rewards (the content, not the $ amount)? Give examples of three rewards and explain what makes them compelling (this is in regards to entrepreneurship)

Answer 1

Rewards:

a) The control remains to the management, in case of other funding methods like venture capital or private equity where the control moves towards the new owner as they hold a significant portion. In crowd funding as there are several owners, so the control remains with the management.

b) One good presentation is stored in the online portal and investors who like the presentation give funding to the company. so the management will not have to go to individual Investor's office in order to ask for funding. So the management can engage in other important activities.

c) Generating money through crowd funding is fast as the online portal is available and any company can list their funding requirements. So unlike other fund raising process where the process in complicated and time consuming. These online portals give entrepreneurship a new edge in generating capital.