IMPACT OF CROWDFUNDING ON VENTURE CAPITAL INDUSTRY IN INDIA

Purva Ranu Jain

Abstract


Startup businesses and entrepreneurs are constantly looking for creative ways to raise money, meet goals, and grow their businesses. Traditionally it was difficult for startup but nowadays there are many options available. The two most effective ways startups are accomplishing this today is through crowdfunding and venture capital funding methods .Crowdfunding is a rapidly diffusing practice in the realm of entrepreneurial finance. Crowdfunding allow entrepreneurs and startups with great ideas to directly connect with, attract, and tap into the support of a new or existing fan base .  In India the concept of crowdfunding is catching up fast and is more publicly recognized but still is in growing stage and is allowed in a restricted manner.  The present paper discusses the impact of crowdfunding on venture capital industry in India. The paper concludes that crowdfunding projects will enlarge the potential market for informal financing and complement traditional sources of startup finance.

Key Words: Crowdfunding, Venture Capital, Startup, informal financing.

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ISSN : 2251-1555