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Abstract
Crowdfunding, an inventive concept refers to a practice of generating capital investments or funds from many individuals for a project, a cause or a startup enterprise. Crowdfunding for startup is adopted when an idea that has the potential to create jobs and generate revenue but needs financial support to become a reality. It is an emerging and innovative online platform for small business founders and startups to invite funding from outsiders. According to Massolution crowdfunding report 2015, the global crowdfunding industry grew immensely in year 2015 with 34.4 billion in business and entrepreneurship domains of crowdfunding.
Concept innovation and its unparalleled rate of growth remained major inspirations to explore the industry in general and in particular to Indian startups. India is seen as the biggest and definitive platform for startups and initiative of crowdfunding companies in India have fueled its growth. Thus till what extent crowdfunding helps business idea to see the reality became impetus of the research. Exploratory research design has been adopted and personal interview and case study method is used to detail the concept. The research is confined to the case studies of leading crowdfunding platforms for startups like Catapooolt and Ketto in India. The research output has given insights into the growth of crowdfunding in India, types ofprojects funded, business model and outreach strategies of crowdfunding platforms, key challenges and few success stories. The presented success stories through crowdfunding may lay a platform to the entrepreneurial ideas to step forward towards crowdfunding to make it a reality.
1. Introduction:
New ventures require resources to succeed, and one of the most critical of these is financing (Gompers and Lerner, 2004; Gorman and Sahlman, 1989; Kortum and Lerner, 2000). A start up is a young company that is just launched to develop. Start-ups are generally small and initially financed and operated by a handful of founders. At the inception stage, starts up companies' expenses normally tend to exceed their revenues due to emphasise on developing, testing and marketing of the business idea. New ventures require resources to grow and succeed, and one of the most critical of these is financing. And as funding is a major concern for start-ups As per the report by industry body NASSCOM, India ranks third among...