Is Crowdfunding the Future of Financing?

If you’re looking to become a successful leader in the globalized world of finance, then you’ll want to consider the MBA Finance program at WU Executive Academy. This specialized program offers professionals a theoretical and practical education, as well as the flexibility required to adapt to future changes in the finance sector. One major shift currently taking place  in the finance world is the direction of funding, where we are seeing more and more startups utilizing crowdfunding.

Crowdfunding started to make its way into investing strategies in 2009, and has since taken a hold of businesses and investors alike. Our MBA program will give you insight into your colleagues’ way of thinking and their own experiences as you collaborate on many projects. This collective knowledge can give you a better perspective on the finance industry as new trends arrive. It’s important to stay up to date with the direction of the finance industry, so keep reading to learn why crowdfunding is the future of financing.

An Overview of Crowdfunding for Students in Business School

When you pursue a graduate degree at our business school, you will learn about various investment methods and gain hands-on practice in investment management. In the past, the process of obtaining investments was more extensive than it is today. Start-up owners would have to head to the bank for a loan, or seek an investment from an accredited investor. This inevitably took a lot of time and resources, while investors were fairly elusive.

Crowdfunding completely changed this process of generating capital. Now, funding comes from an investment round with the public. Everyday people can make smaller investments in your company (as little as $100), which can add up quickly and lead to a considerable amount of funding for your business proposal. Because crowdfunding is now so popular with both businesses and investors, you’ll want to add this investing technique to your skill set.

The Biggest Draw to Crowdfunding for Businesses

Every method for securing investments has its benefits, including crowdfunding. You will discover how to optimize financial policy during your MBA program, based on the company’s specifications. During your studies, you will also cover various topics in behavioural finance, which will display the psychological effects and biases that influence human decision-making. Crowdfunding requires an understanding of many psychological factors in order to handle the work and commitment that comes with securing investors for a startup.

Crowdfunding can help build your market and network, whether you have an existing business that is struggling to progress, or a startup that requires initial funds. Crowdfunding campaigns allow you to tap into new markets and connect with other businesses and investors in the industry. When you are able to foster these relationships and see the acceleration of your business, you are able to make more informed decisions.

Crowdfunding and Millenials: Becoming More Financially Visible

The most frequent contributors to crowdfunding are investors between the ages of 24-35. This is due to the level of exposure that crowdfunding can achieve thanks to social media platforms. Millennials are familiar with these platforms where crowdfunding campaigns are becoming more visible to the masses.

Our MBA program lets you specialize in finance as you work alongside experienced executives from a number of industries and across many age ranges, many of which will likely have experience in crowdfunding. Learning from their experiences will help you better understand the processes of successful financing, and can give you a leg up when you finish your program. This unique approach will help you expand your expertise and strengthen your intuition as you chase success in the world of finance.

Interested in pursuing an MBA in Finance?

Contact WU Executive Academy for more information!