THE FINANCIAL CROWDFUNDING WITH DIVERSE BUSINESS MODELS

Abstract

The Alternative Finance Industry of “Crowdfunding†is to collect relatively small contribution of large number of people in order to support the small and medium enterprises and startups. The financial market shows a significant growth in Asia  volume grow by 320% to 3.4 billion. The financial model consist of  Equity or Debt (peer to peer lending) based crowdfunding. The financial model basic feature of financial return on investment. The diversification in business model with the distinct approach of implement the financial model depend on their regulatory systems to encourage the crowd for invest in alternative financial industry and furthermore, these model ensure its financial return on high risk investment. The business model offered “Nominee and Non Nominee†structure in equity based crowdfunding where as in debt based crowdfunding business model are “Client Segregated Account, Fixed Loan, Notary and “Guaranteed†Return  consist of (Offline Guaranteed Return or Automated Guaranteed Return)â€. The principle aim of article is to analyses the diverse business models in terms of its rational, benefits and drawbacks. Subsequently to find out whether these models are able to eliminate the risk of investment. In last part article summed up with appropriate conclusion and suggestion.