What is Crowdfunding and how does it work? | Finlaw Consultancy | Adv P.M. Mishra

Watch P.M. Mishra, an expert, focuses on What is crowdfunding? The typical understanding of crowdfunding is that it is one of the ways to generate money without selling any shares and involves asking the public to support your project, however, crowdsourcing actually has a distinct meaning and dimension. Crowdfunding is one way to avoid being dependent on a single person if you are a startup, an entrepreneur, or someone who is struggling. At the end of the day, crowdfunding will enable the crowd to gain something. If you are starting a business, for example, you can always share any profits you make with the crowd. One can always turn to crowdfund to save their lives or the lives of their family if they are in crisis and have no other resources. According to Adv. P.M. Mishra, crowdsourcing is a noble endeavor. Additionally, because most crowdfunding platforms are not even regulated and those who are conducting crowdfunding are not doing it in accordance with the law, crowdsourcing has been utilized in an abusive manner around the globe, and others compare it to the “Collective Investment Scheme” (CIS). Depending on the nation, there are many types of licensing requirements and regulations governing crowdfunding. In this video, he gave an explanation using a real estate crowdfunding scenario.

If you want to start your own Crowdfunding platform you need to know the regulations and start the process. Follow the ethics of Crowdfunding. One must need to understand the situation and concepts thoroughly and get involved in it.

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