CROWDFUNDING IN MICHIGAN STATE Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

CROWDFUNDING IN MICHIGAN STATE Case Solution

BACKGROUND AND HISTORY

Crowdfunding is a practice of funding a project or any venture through raising funds from large number of people through internet, events, and other methods. In 2013, over $5.1 billion were via crowdfunding worldwide. (wikipedia) there are generally two types of crowdfunding, The Crowdfunding Centre's May 2014 report identified two primary types of Crowdfunding:
Equity Crowdfunding: the backer receives shares of a company, usually in its early stages, in exchange for the money pledged.
Furthermore, there are two methods of crowdfunding, which are donation crowdfunding and investment crowdfunding. Such entities in the state of Michigan began their operations after the governor of Michigan, Rick Snyder signed public act 264. After this legislation was enacted, it provided help to start ups and small businesses to seek help from local investors in the form crowdfunding, this is when these crowd funding entities started to raise capital for many small businesses and projects.

(Brookens, 2013)

Crowdfunding is not a new type of fund raising activity but from decades, this activity is undertaken to help any cause or business. Sometimes people carried out Crowdfunding in order to save their own investments; Thus, crowd funded their own investment.

Until now the biggest funding of any project through crowd funding is the financing of the game Star Citizens, which is an upcoming space sim video game that will be developed by cloud imperium games. The amount raised is almost equal to $113 million and the campaign is currently ongoing.

FUNCTIONS OF CROWDFUNDING ENTITIES

The crowdfunding entities in the state of Michigan and all around the world generally raise funds through two types of methods of Crowdfunding, which are donation Crowdfunding and Investment Crowdfunding. Crowdfunding is often conducted through Online Portals, which makes it easy for small ventures and projects and for the people who want to spend their money on such small ventures and projects.

CROWDFUNDING ENTITIES IN MICHIGAN

There are many entities carrying out crowdfunding activities for small business start ups in the state of Michigan and also for donation purposes. There are mainly three types of investment crowdfunding in Michigan, which are

Michigan crowd funding
Federal Crowdfunding
Accredited investor Crowdfunding...................
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