Jan 10, 2017 06:20 AM EST
Business students who would like to start their own company one day would face the inevitable question - Where to get the cash? They would often need to look at financial institutions to provide the resource they need. That would often mean getting a loan which can sometimes lead to debt. Some entrepreneurs would give away a portion of the company for financial security.
And it is not all the time you would get a hard yes from banks or financial institutions. But things are financially changing in the 21st century. Business funding can be as easy as getting online. This is made possible by crowd funding. Suffolk University is one school that is teaching students this technique, as reported by Fox 25 News.
It is still a new financing concept but a lot of people are already turning to the internet to appeal to the public for cash. Suffolk is using this technique in a new course titled "Crowdfunding the Venture."
One business student at Suffolk University has already initiated a funding campaign for Warm Up Coffee, as featured in Kick Starter. This was founded by Suffolk undergraduate James Testa. He did not get the support he needed locally which is why he turned to crowd funding.
According to Testa and his classmate Chuck Gibson, as students, they do not have the cash to start their own business. While Testa is sourcing funds for Warm Up Coffee, Gibson is kick starting Wicked Fisha. They used the technique learned from the course and often times they had to explain the new financing concept to their friends and family.
Not only do these students get the support from crowd funding, their professors are fully on board with the idea too. Professors Jenny Dinger and Chaim Letwin explained that crowd funding is unlike traditional financing. Business owners do not have to pay back the money. Investors can just buy the idea that they are going to become a potential customer.
Want to know more about Suffolk University? Check out the video of their accomplishments below:
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