ASEAN-Korea Financial Cooperation Centre

Financial Cooperation Note Series Vol. 7

Crowdfunding as an alternative Finance for Startups

Table of Contents

1. Overview of Crowdfunding

2.  Understanding the Crowdfunding Market

3. Crowdfunding Statistics and Success Stories

4. Crowdfunding Regulatory Framework

Introduction

Crowdfunding is a term combining "crowd," meaning a group or multitude, and "funding," referring to capital raising. It signifies the act of entrepreneurs, including creative ones, raising funds from a large number of unspecified investors through online intermediaries, called crowdfunding brokers.

Through crowdfunding, creative entrepreneurs can create a platform to materialize and grow the ideas they would otherwise not have the resources to actualize. On the other hand, for individuals with limited investment opportunities, crowdfunding provides new investment opportunities in promising startups that may become successful companies - known as unicorns - in the future. In essence, crowdfunding serves as an online platform connecting individual investors seeking new investment opportunities with startups dreaming of becoming unicorns in the future.

ASEAN-ROK Financial Cooperation Centre