ABSTRACT
The market for entrepreneurial finance is in a dynamic state. A new market niche has emerged and continues to develop. The rules of the game and the methods for receiving financial backing have changed in many ways. The dynamic state of crowdfunding as a new market niche and its popularity as an alternative source of finance for new ventures are discussed in this chapter and its impact on start-ups despite its challenges. The meaning of a niche market, its features in the context of crowdfunding and the factors which acted as catalysts for the development of the niche market are also discussed. While exploring the prospects of bridging the entrepreneurial funding gap in entrepreneurship, we also examine the correlation between crowdfunding and small firms’ performance.
