Summary
Crowdfunding — which is essentially online fundraising — has grown exponentially over the past few years. Hundreds of crowdfunding sites like Crowdcube, GoFundMe, and Kickstarter match people in need of capital for ideas, businesses, and causes with investors who want to support them. Retail banks and venture capital firms are at risk as entrepreneurs and small businesses bypass them to raise capital through crowdfunding. In this report, we outline the main players of crowdfunding, where they pose a threat, and how financial firms should respond.
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