2. INTRODUCTION
• Crowdfunding gained traction in the United
States after the launch of ArtistShare, the first
online platform for crowdfunding, in 2003.
• The use of small amounts of capital from a
large number of individuals to finance a new
business venture.
4. Advantage of Crowd Funding
• It provides access to capital.
• It hedges risk.
• It serves as a marketing tool.
• It gives proof of concept.
5. Equity Crowd Funding an Journey to Ipo
• Concept of business crowd funding
appears to be gaining ground as IPOs
continue to be delayed.
• Equity Crowd Fund basically regulated by
SEBI.
• Help's in capital accumulation for future
IPO.
6. MSE Sector In India
• A recent IFC study on MSME finance in India
indicates there are 29.8 million enterprises.
• Employing 69 million people.
• This sector accounts for 45 per cent of Indian
industrial output and 40 per cent of exports.
• Issue in financial institutions, especially banks,
averse to lending to this sector.
7. Start Crowd funding for MSE sector
• Crowdfunding provides a much needed new
mode of financing for start-ups and SME sector
and increases flows of credit.
• SMEs are able to raise funds at lower cost of
capital without undergoing through rigorous
procedures in this mode.
• Crowdfunding provides new investment avenue
and provides a new product for portfolio
diversification of Investors.
8. The Accredited Investors
• Qualified Institutional Buyers
• Companies incorporated under the Companies
Act of India, with a minimum net worth 20 Cr.
• High Net Worth Individuals (HNIs) with a
minimum net worth Rs. 2 Crores
• Eligible Retail Investors (ERIs)
– who avail services of a Portfolio manager
– who have passed an Appropriateness Test