Crowd funding

With crowd funding business capital is acquired from many small investors. These small investors all invest a relative small amount of money and all these investments are pooled together to create one large investment amount. With this new way of financing it is now possible to get funding for capital intensive projects without the need for big financial institutions or high net worth investors to support the project. Internet is an important technology that makes this all possible. Due to Internet, groups of investors have fast ways of communicating, and investment pools can be created instantly. Investors world wide are able to join a project, as long as they have an Internet connection, and funds to invest of course.

Crowd funding is all about finding groups of investors willing to join forces together to make a specific project happen. An example of such project could be funding a capital intensive company. Depending on the required capital a group of investors pools their money together. Usually an independent party collects these funds. Laragh Finance is a company that utilizes crowd funding for investment projects. Crowd funding is also used as a replacement for record companies, for example by sellaband.com.