One of the latest trend-setting methods of alternative
financing is crowdfunding, which encompasses the cooperation of
individuals within an online network who pool in their resources to
support initiatives by innovators and creative
entrepreneurs.
This disruptive source of alternative capital works by tapping
into the collective effort of the internet community through
web-based media and communication, and ultimately enables
individuals to pledge their capital in favour of particular
business ventures or specific purposes.
One of the main knee-jerk reactions to the global financial
crisis in 2008 was the implementation of stricter capital
requirements on retail banks.
This has resulted in restricted opportunities for traditional
debt funding, particularly for start-ups and small enterprises. The
longing for finance by entrepreneurs coupled with solid liquidity
among investors sparked the emergence of this disintermediating
technology of crowdfunding, thereby
