Crowdfunding: The collective effort of individuals who network and pool their money, usually via the Internet, to support efforts initiated by other people or organizations.
We all keep hearing all the stories about how companies have been successful at raising money through Crowdfunding. The new JOBS Act also has provisions that will allow entrepreneurs to open the fundraising to more people. In any case, where does one go to find the crowd and how does one get them to part with their cash?
While many people associate startups with the consumer Internet and big tech spaces, there are also several interesting startups that are finding new ways to apply technology to the food industry. According to Poets & Quants, 7% of last year's Stanford's MBA entrepreneurs created food startups. The new Columbia Business Labs is also home to several food and beverage startups, such as Urbavour and Cup & Compass. Here is a list of some growing food startups, including four MBA-founded food startups.
Since more people are using their MBA to start their own business, there are more MBA entrepreneurs who are competing for startup funds. Crowdfunding websites allow you to raise money for your business without relying on venture capital or angel investors. RocketHub is an example of an increasingly popular crowdfunding website that has allowed entrepreneurs to successfully launch or expand their businesses.
Shelley Heinrich is the Interim Director of MBA Admissions and Marketing at the George Washington School of Business. In this interview, she discusses MBA trends such as non-traditional applications for the MBA, entrepreneurship, crowdfunding, and a more diverse MBA student body.
Crowdfunding allows entrepreneurs to get capital for their business by allowing individuals to make financial contributions through the Internet. Given the increased interest MBAs have in entrepreneurship, it's not surprising that more MBAs are using crowdfunding to build their businesses. Crowdfunding may become even more prevalent if new crowdfunding legislation gets passed.