There are many things that have changed in recent years when it comes to business and commerce but arguably the most significant transformation has been in the way we borrow money to fund our business plans.
When the traditional lines of credit from banks dried up as a result of the global financial crisis, innovative ways were devised to put investors and entrepreneurs in front of each other, via the internet.
Crowdfunding is a perfect description of what lending in this way is all about and this alternative source of funding for business owners and entrepreneurial individuals, has seen market growth increase by over 60% each year since 2009.
The numbers relating to crowdfunding make impressive reading. It is estimated that crowdfunding will help to create over 270,000 jobs globally in 2014 and for every $1 of crowdfunding invested, an estimated $6.36 of revenue is produced.
As you would expect considering the phenomenal growth of crowdfunding, the number of websites offering this financial service has rapidly expanded to a current level of over 450 sites worldwide. Despite this stellar expansion in popularity, many of these sites have been able to report 0% fraud.
This infographic by BusinessProfiles.com takes a look at what crowdfunding is all about and provides some fascinating facts and figures that should have a few banks looking over their shoulders.