Crowdfunding refers to the financing of a new company or other project by selling shares or bonds directly to small private investors via the Internet. Despite its attractions, there have been fears that this growing practice offers scant legal protection to investors or to entrepreneurs, who may find their ideas are stolen and developed by others. In the UK and the USA, crowdfunding platforms have increasingly been brought within the remit of the regulatory authorities.
Social lending, also known as peer-to-peer (P2P) lending, is a method of debt financing that enables individuals to borrow and lend money without the use of an official financial institution as an intermediary.
