Six Things You Need to Know About Crowdfunding in Developing Countries

In developed markets, crowdfunding is swelling the ranks of early-stage entrepreneurs and bolstering the pipeline of enterprises that diversify economies and create the majority of jobs. However, for early-stage entrepreneurs in emerging markets, the path toward crowdfunding remains untrod. Microlending platforms like Kiva are issuing consumer lending finance but cannot provide enough capital to fund the core business operations of a startup. Larger amounts of debt or equity are available via online platforms, but these are best suited for more mature companies or projects. What is missing is a normative usage of presale, rewards, or contributions crowdfunding for early-stage companies.