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Marco Polo, first entrepreneur who raised venture capital

Marco Polo, the Venetian merchant, who arrived to China in the thirteenth century, was one of the first entrepreneurs who got venture capital. He convinced several wealthy Venetians to finance his commercial expedition to Asia. Marco Polo promised that he would share his profits of this risky venture with them. These funders were a kind of precursors of the current venture capital, which main characteristics I describe below in a simplified form: Continue Reading…

What is Crowdfunding?

31 July, 2013 — 4 Comments
crowdfunding

Crowdfunding. Photo by Colbrain on Flickr used under a Creative Commons licence

Crowdfunding is the action, by which a person, company or organization asks a multitude of people to finance his/its projects via Internet, each of them giving a small quantity of money.

Some entrepreneurs and organizations have developed different crowdfunding platforms. They are web platforms that offer projects creators a display space to publish their projects in order to get financing. These platforms also allow the projects to use a secure payment page to ensure that the projects receive their money. In exchange, most platforms receive a commission based on the amount collected.

Which kinds of crowdfunding exist and what do the financial backers receive in exchange? Continue Reading…