Wisdom of crowds [crowdfunding

Abstract

Forty years ago, the only place to obtain financing for a new startup idea for the vast majority of businesses, including technology ventures, was the bank. Then came the 1980s and financial deregulation, which encouraged a great deal of interest in alternative investments. Thus there was a growth in venture capitalists and angel investors searching for possible flutter in technology businesses. In the current austere times, tech entrepreneurs have had a tougher run of raising finances than the previous decade - when even absurd propositions attracted millions of dollars and pounds. The limited choices of finance often mean that technology startups have to pan-handle the men in pinstripes. The paper presents how crowdfunding could be an alternative source of funding.