A Study on awareness of Crowd Funding as a viable option to raise pre-seed Capital for Startups

Abstract

Revolution of Startups have played very pivot role in the growth of Indian economy.  The huge  growth in Indian economy for the next decade is expected to be taken by the startup revolution, driven by private enterprises.  This revolution has largly contributed in the incremental development of our country and as result service and manufacturing sectors has witnessed doubled digit GDP growth that achieved during 2003-2007.  In the recent three  years the startup fever has gripped this country and have the potential to catapult it into the planned path for economic supremacy. In this backrop rasing pre-seed capital is become a significat and burning topic. Researches have indicated that raising capital was always a challenge for the startup. Though different modes of raising capital like angel investors, venture capitalists, bank loans are available in the market still these options are not effective enough always to raise pre-seed capital. The role of Crowd funding is become significant here and has the potential to solve this problem to raise capital at pre-seed stage for Startups.  However the awarness of crowd funding is still in the nasent stage.There exist a big Gap between the demand and supply in terms of fund availability and that gap can be easily bridged with the help of popularly emerging option known as crowd funding. This paper is the indicative of different trypes of crowd funding and their acceptability in the area of startups.