Crowdfunding and capitalism: the ties that bind

Source: Forbes
Author: Philip Salter

How can capitalism be defended if it’s seen to serve mostly the few? It’s a question defenders of market based economies have long pondered upon. Although economists are largely in agreement on the connection between freer and more trade and our growing wealth, segments of the general public aren’t convinced that their lives are significantly improved, or perhaps more precisely that their lives aren’t improved enough compared to others.

I have sympathy with this concern. If you feel that others – whether your neighbours, your fellow countrymen, or the people of other nations – are prospering while you’re struggling, it’s human nature to feel disaffected. You don’t need to live next door to the Kardashians to covet your neighbour’s ass.

Shantanu Sinha, Corporate Managing Associate at Mishcon de Reya, states: “Crowdfunding has evolved as a major source of alternative finance. We have seen small and medium sized companies raise anything from tens of thousands to small millions. This has helped to both unlock capital in the hands of the public – while maintaining a light touch of regulation – and give businesses an injection of growth capital.”

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