Crowdfunding's Potential for the Developing World

Crowdfunding is an Internet-enabled way for businesses or other organizations to raise money in the form of either donations or investments from multiple individuals. This new form of capital formation emerged in the wake of the 2008 financial cris...

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Bibliographic Details
Main Author:	World Bank
Format:	Working Paper
Language:	English en_US
Published:	Washington, DC 2014
Subjects:	ACCESS TO BANK ACCESS TO BANK LOANS ACCESS TO CAPITAL ACCESS TO FINANCE ACCOUNTANT ACCREDITATION ALTERNATIVE FUNDING AMOUNT OF CAPITAL ANGEL GROUPS ANGEL INVESTOR ANGEL INVESTORS ANTI-MONEY LAUNDERING ASSET CLASS BANK LOANS BANKRUPTCY BARRIERS TO ENTRY BID BIDS BONDS BORROWER BUSINESS ANGEL BUSINESS ANGELS BUSINESS DEVELOPMENT BUSINESS DEVELOPMENT SERVICES BUSINESS FAILURE BUSINESS INCUBATION BUSINESS ORGANIZATIONS BUSINESS OWNER BUSINESS PLAN BUSINESS STARTUPS CAPACITY BUILDING CAPITAL FLOWS CAPITAL FORMATION CAPITAL FUNDS CAPITAL MARKET CAPITAL MARKETS CAPITAL REQUIREMENTS CAPITAL STRUCTURES CASH FLOW CHAMBERS OF COMMERCE CLEARING HOUSE COMMON STOCK COMMUNITY DEVELOPMENT CONSUMER CONFIDENCE CREDIBILITY CREDITORS CULTURAL NORMS DEBT DEBT CAPITAL DEBT INSTRUMENT DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPMENT BANKS DIASPORA INVESTMENT DIASPORA INVESTMENTS DIRECT INVESTMENT ECONOMIC CRISIS ECONOMIC DEVELOPMENT ECONOMIC GROWTH EMERGING ECONOMIES ENABLING ENVIRONMENT ENTREPRENEUR ENTREPRENEURIAL ACTIVITY ENTREPRENEURIAL FINANCE ENTREPRENEURIAL VENTURES ENTREPRENEURS EQUITY HOLDINGS EQUITY INSTRUMENTS EQUITY INVESTMENT EQUITY INVESTMENTS EQUITY OFFERING EQUITY OFFERINGS EQUITY SECURITY EQUITY STAKE EQUITY STAKES ESCROW EXPENDITURES FAMILY FINANCE FINANCIAL CRISIS FINANCIAL HEALTH FINANCIAL INSTRUMENTS FINANCIAL LITERACY FINANCIAL MARKETS FINANCIAL PERFORMANCE FINANCIAL REGULATIONS FINANCIAL SERVICES FINANCIAL TOOL FINANCIAL TOOLS FIXED RATE FLOW OF CAPITAL FLOW OF INFORMATION FOREIGN CAPITAL FOREIGN DIRECT INVESTMENT FRAUD FRAUD RISK FUNDING SOURCE GENDER GLOBAL ECONOMY GRAY ECONOMY GROSS DOMESTIC PRODUCT HOUSEHOLDS ILLIQUIDITY INDIVIDUAL INVESTOR INDIVIDUAL INVESTORS INFORMATION SYSTEM INITIAL PUBLIC OFFERING INSTITUTIONAL INVESTORS INTELLECTUAL PROPERTY INTEREST PAYMENTS INTEREST RATE INTEREST RATES INTERNATIONAL BANK INTERNATIONAL DEVELOPMENT INVENTORY INVESTING INVESTMENT ACTIVITY INVESTMENT ALLOCATIONS INVESTMENT ALTERNATIVE INVESTMENT BANKS INVESTMENT DECISIONS INVESTMENT OPPORTUNITIES INVESTMENT RISK INVESTMENT RISKS INVESTMENT VEHICLE INVESTMENT VEHICLES INVESTOR BASE INVESTOR EDUCATION INVESTOR PERSPECTIVE INVESTOR PROTECTION INVESTOR PROTECTIONS INVESTOR RETURNS IPO ISLAMIC FINANCE JOB CREATION LACK OF CAPITAL LEARNING OPPORTUNITIES LEGAL CONSTRAINTS LENDER LENDERS LENDING REQUIREMENTS LEVEL OF COMMITMENT LEVEL OF COMMITMENTS LOAN LOCAL FINANCIAL INSTITUTIONS LONG-TERM INVESTMENTS MARKET ACCEPTANCE MARKET EFFICIENCIES MARKET SIZE MARKET STRUCTURES MARKET VALUE MICRO-FINANCE MICRO-LENDING MICRO-LOANS MICROFINANCE MOBILE PHONE NET WORTH NETWORKING OPPORTUNITIES NEW BUSINESSES NEW MARKET ONLINE COMMUNITIES PERSONAL INCOME PLEDGES PORTFOLIO PORTFOLIOS POTENTIAL INVESTMENT POTENTIAL INVESTMENTS POTENTIAL INVESTORS PRIVATE CAPITAL PRIVATE EQUITY PROFESSIONAL INVESTOR PROFESSIONAL INVESTORS PROFITABILITY PUBLIC POLICY PURCHASING POWER PURCHASING POWER PARITY RATE OF RETURN REAL ESTATE REGULATORY FRAMEWORK REMITTANCE REMITTANCES REPAYMENT RETURN RETURNS RETURNS TO INVESTORS RISK CAPITAL RISK CONTROLS RISK OF LOSS SALE OF SECURITIES SAVINGS SECURITIES SECURITIES LAWS SECURITIES REGULATIONS SECURITY INTEREST SHAREHOLDER SHAREHOLDERS SHORT-TERM FINANCING SHORT-TERM LIQUIDITY SMALL BUSINESS SMALL BUSINESSES SMALL ENTERPRISE SMALL ENTERPRISES SOCIAL NETWORK SOCIAL NETWORKS START-UP START-UPS STOCK EXCHANGES TAX TRAINING FOR ENTREPRENEURS TRANSACTION TRANSPARENCY TRANSPARENT SYSTEM VALUATION VENTURE CAPITAL VENTURE CAPITAL FUNDS VENTURE CAPITALIST VENTURE CAPITALISTS VENTURE CREATION VENTURE INVESTOR WORKING CAPITAL
Online Access:	http://documents.worldbank.org/curated/en/2013/01/18806928/crowdfundings-potential-developing-world http://hdl.handle.net/10986/17626

Description
Summary:	Crowdfunding is an Internet-enabled way for businesses or other organizations to raise money in the form of either donations or investments from multiple individuals. This new form of capital formation emerged in the wake of the 2008 financial crisis largely because of the difficulties faced by artisans, entrepreneurs and early-stage enterprises in raising funds. Crowdfunding takes advantage of crowd-based decision-making and innovation, and applies it to the funding of projects or businesses. Using social networks, social profiles, and web-based communication, individuals and companies have raised billions of dollars in debt, equity, and donations for projects. Building a crowdfunding ecosystem depends on key enablers to build trust. This document explores specific strategies to drive crowdfunding, the risks in crowdfunding and how to mitigate them, and the potential use of crowdfunding in the developing world.

Crowdfunding's Potential for the Developing World

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