Challenges of Crowdfunding During Covid-19 Period

Abstract

Crowdfunding is the process of raising money from a group of individuals via online platforms. Crowdfunding assists a fledgling business in growing and sustaining itself. It provides investors with additional funding options as well as a new product for portfolio diversification. Crowdfunding makes it possible for young people to establish a business. The point of the article was to focus on the issues that the sector faces. The research is descriptive in nature. Secondary records were gathered from a variety of research papers, websites, and publications. Crowdfunding is a crowdsourcing application. This concept was originally introduced in the year 2000, and it has since spread fast throughout the world. In total, fifty-two crowdfunding sites exist around the world. Only approved investors are permitted to participate in these crowdfunding activities, according to SEBI. High-net-worth individuals would make up such traders. SEBI has highlighted a number of variables that have shaped the crowdfunding model in India. SEBI has made an effort to maintain the balance between investor protection and the stock market's contribution to economic growth and development, as well as to prevent the emergence of systematic risk in the economy. Because there is an effect in every aspect of society, this study found some of the obstacles of crowd-funding during covid-19.