n an economic climate in which creative and artistic projects arguably face the greatest barriers to traditional forms of finance, many are now turning to the ‘crowd’ as an alternative source of funding. This update discusses the use of crowdfunding in the media, technology and entertainment sectors and some of the legal and regulatory issues that arise.
What is crowdfunding?
Crowdfunding as a source of finance emerged from artistic projects seeking to raise money by appealing to a large number of people through the Internet. Usually, websites serve as a platform from which projects can make their case to the crowd. Interested members of the crowd can then pledge donations on the platform, in return for which they are promised either a benefit-in-kind or a financial return if the project is successful.
Read More at International Law Office