Could Crowdfunding Be Right for Your Business?

Crowdfunding is among the fastest growing segments in the financial industry. This article, based on research and teaching at IESE in this emerging area, outlines the various options currently on the market. Although these funding alternatives are by no means perfect, they have several strengths that traditional banks would do well to bear in mind: nimble, personalized, efficient, accountable, transparent, character-based as opposed to purely collateral, credit-based; in other words, human. Those are the new guiding principles for a financial industry that needs to restore consumer confidence and compete with a new breed of tech-driven players.