![Financing the Entrepreneurial Venture Case management homework help
One of the newest forms of financing available to entrepreneurs is something called
crowdfunding. Instead of traditional routes of obtaining funding through banks, venture
capital, or wealthy individuals a new breed of entrepreneurs are obtaining funding via
numerous small donations using social media or new online platforms such as
Kickstarter.com. A recent example of a crowdfunded venture is the movie Veronica Mars,
which was funded by numerous small donations from fans of the TV show.Until recently,
crowdfunding has been limited to donations rather than actual investments. Individuals
who help fund the business have not received a share of the profits of the new venture.
Instead, they typically get some kind of alternative reward. For example, people who donate
money to finance a new film might get a chance to meet some of the movie stars or be given
a small role in the movie. The reason crowdfunding has been limited to donations rather
than investments is that once you start offering a share of the profit to those who donate
you are subjecting yourself to huge number of laws and regulations designed to protect
investors. But these laws don’t apply if you provide alternative rewards in exchange for
donations.But in a very interesting new development, in 2012 Congress passed the JOBS Act
which removed some of legal barriers to using crowdfunding and now allows entrepreneurs
to offer investors actual shares in the profits of the ventures rather than the small rewards
typically offered to donors. This will potentially lead to a dramatic growth of opportunities
for entrepreneurial financing. However, the removal of regulation may also lead to lawsuits
or allegations of fraud against entrepreneurs whose ventures fail to make a profit.Carefully
review the Pearson tutorials as well as Sherman (2012) or The Staff of Entrepreneur Media,
Inc. (2015) for an overview of traditional sources of entrepreneurial finance. Also take a
look at the following articles on crowdfunding:ElBoghdady, D., & Harrison, J. D. (Oct. 24,
2013). SEC approves ‘crowdfunding’ plan. The Washington Post [ProQuest]Tillotson, K.
(Nov. 14, 2012). Crowdfunding gears up for a fresh start. McClatchy – Tribune News Service
[ProQuest]Case AssignmentAfter you’ve finished your research on crowdfunding, write
a 3-4 pages paper addressing the following questions:](https://image.slidesharecdn.com/financingtheentrepreneurialventurecasemanagementhomeworkhelp-230223223105-46e246ec/85/Financing-the-Entrepreneurial-Venture-Case-management-homework-help-pdf-1-320.jpg)
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Financing the Entrepreneurial Venture Case management homework help.pdf
- 1. Financing the Entrepreneurial Venture Case management homework help One of the newest forms of financing available to entrepreneurs is something called crowdfunding. Instead of traditional routes of obtaining funding through banks, venture capital, or wealthy individuals a new breed of entrepreneurs are obtaining funding via numerous small donations using social media or new online platforms such as Kickstarter.com. A recent example of a crowdfunded venture is the movie Veronica Mars, which was funded by numerous small donations from fans of the TV show.Until recently, crowdfunding has been limited to donations rather than actual investments. Individuals who help fund the business have not received a share of the profits of the new venture. Instead, they typically get some kind of alternative reward. For example, people who donate money to finance a new film might get a chance to meet some of the movie stars or be given a small role in the movie. The reason crowdfunding has been limited to donations rather than investments is that once you start offering a share of the profit to those who donate you are subjecting yourself to huge number of laws and regulations designed to protect investors. But these laws don’t apply if you provide alternative rewards in exchange for donations.But in a very interesting new development, in 2012 Congress passed the JOBS Act which removed some of legal barriers to using crowdfunding and now allows entrepreneurs to offer investors actual shares in the profits of the ventures rather than the small rewards typically offered to donors. This will potentially lead to a dramatic growth of opportunities for entrepreneurial financing. However, the removal of regulation may also lead to lawsuits or allegations of fraud against entrepreneurs whose ventures fail to make a profit.Carefully review the Pearson tutorials as well as Sherman (2012) or The Staff of Entrepreneur Media, Inc. (2015) for an overview of traditional sources of entrepreneurial finance. Also take a look at the following articles on crowdfunding:ElBoghdady, D., & Harrison, J. D. (Oct. 24, 2013). SEC approves ‘crowdfunding’ plan. The Washington Post [ProQuest]Tillotson, K. (Nov. 14, 2012). Crowdfunding gears up for a fresh start. McClatchy – Tribune News Service [ProQuest]Case AssignmentAfter you’ve finished your research on crowdfunding, write a 3-4 pages paper addressing the following questions: