Crowdfunding in Greece
Crowdfunding, also known as collective or mass-financing, is a new method for financing a range of initiatives such as businesses, cultural activities, social projects, etc. It allows entrepreneurs to request funds from a large number of people, each one usually providing a relatively small sum. It is an open offer, usually raised through a website, and can be presented with or without a reward system or potential profit for the investor. Thus, these contributions can have the character of grants or, conversely, provide some financial compensation for the risk taken.
Crowdfunding is a new type of alternative funding that connects those who can give, lend, or invest money with people who need money for a specific project. Campaigns are usually based on public requests for funding through the internet and are aimed at specific initiatives. A crowdfunding process will normally involve three types of participants: the entrepreneur, the group of individuals who choose to contribute funds to support the initiative, and technological platforms that allow contact between them.
This article investigates the impact of "crowdfunding" as a viable source of capital, as well as the benefits and drawbacks of crowdfunding in social and traditional enterprises, in order to better understand how crowdfunding can be beneficial in terms of both economic and social impact, as well as how the important elements of a successful crowdfunding campaign can be identified.
Crowdfunding can therefore be described as a new mechanism for financial disintermediation, usually based on digital technologies. Recently it has experienced significant growth, successfully adapting to the financing needs of companies in general, and entrepreneurs in particular.