Funding
Funding is the act of providing
Sources of funding include
Funds can be allocated for either short-term or long-term purposes.
Economics
In economics funds are injected into the market as capital by lenders and taken as loans by borrowers. There are two ways in which the capital can end up at the borrower. The lender can lend the capital to a financial intermediary against interest. These financial intermediaries then reinvest the money against a higher rate. The use of financial intermediaries to finance operations is called indirect finance. A lender can also go to the financial markets to directly lend to a borrower. This method is called direct finance.[2]
Purpose of Funding
Research funding
Research funding is funding used for
Launch a business
Uses on investment
Fund management companies gather pools of money from many investors and use them to purchase
Methods of Funding
Government Grants
Government could allocate funds itself or through
Crowdfunding
Crowdfunding exists in mainly two types, reward-based crowdfunding and equity-based crowdfunding. In the former, small firms could pre-sell a product or service to start a business whereas in the latter, backers buy a certain amount of shares of a firm in exchange of money.[10] As for reward-based crowdfunding, project creators would set a funding target and deadline. Anyone who is interested can pledge on the projects. Projects must reach its targeted amount in order for it to be carried out. Once the projects ended with enough funds, projects creators would have to make sure that they fulfill their promises by the intended timeline and delivery their products or services.[11]
Raise from investors
To raise
Self-Organized Funding Allocation
Self-organized funding allocation (SOFA) is a method of distributing funding for scientific research. In this system, each researcher is allocated an equal amount of funding, and is required to anonymously allocate a fraction of their funds to the research of others. Proponents of SOFA argue that it would result in similar distribution of funding as the present grant system, but with less overhead.[14] In 2016, a test pilot of SOFA began in the Netherlands.[15]
Securing loans
A company or an individual may secure a loan to get access to capital. Often borrowers must use a secured loan where assets are pledged as collateral. If the borrower defaults, ownership of the collateral reverts to the lender. Both tangible and intangible assets can be used to secure loans.[16] The use of IP as collateral in IP-backed finance transactions is the subject of a report series at the World Intellectual Property Organization.[17]
Withdrawal of funding
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Withdrawal of funding, or defunding, occurs when funding previously given to an organisation ceases, especially in relation to Governmental funding.[18] Defunding could be as a result of a disagreement or failure to meet set
See also
- Foundation (non-profit)
- Investment
- Crowdfunding
- Peer-to-peer lending
- Research funding
- Seed money
- Micro finance
- Mutual fund
- Trust Fund
- Equity fund
- Intangible asset finance
References
- ISBN 978-3-319-78524-0.
- ISBN 978-0273765738.
- ^ Imperial College London(2014) Types of research funding [Online] Available at: http://www3.imperial.ac.uk/researchsupport/funderinformation/typesofresearchfunding (Accessed:15 October 2014)
- ^ "Set up a business". GOV.UK. Retrieved 2023-08-24.
- ^ "Mutual Funds | Investor.gov". www.investor.gov. Retrieved 2023-08-24.
- ^ Stroke Association(2009) Research funding process [Online] Available at: http://www.stroke.org.uk/research/research-funding-process (Accessed: 21 October 2014)
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- ^ Clifford, C.(2014) Crowdfunding Generates More Than $60,000 an Hour (Infographic) [Online] Available at: http://www.entrepreneur.com/article/234051 (Accessed: 22 October 2014)
- ^ Kickstarter, Inc.(2010) "Seven things to know about Kickstarter" [Online] Available at: https://www.kickstarter.com/hello?ref=footer (Accessed: 23 October 2014)
- ^ Raise Capital(2011) "Business talk - How to raise capital for a hedge fund" [Online] Available at: http://www.raise-capital.com/raise-capital-for-hedge-fund.php (Accessed: 24 October 2014)
- S2CID 256504532.
- PMID 30089925.
- ^ Coelho, Andre. "NETHERLANDS: A radical new way do fund science | BIEN". Retrieved 2 June 2019.
- OCLC 1001337977.)
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: CS1 maint: location missing publisher (link) CS1 maint: others (link - ^ "Launch of new WIPO report series on unlocking IP-Backed Finance at Singapore's IP Week, 26 August 2021 – Sharing the Singapore Country Report". www.wipo.int. Retrieved 2021-12-24.
- ^ "The definition of defund". www.dictionary.com. Retrieved 7 October 2018.
- ^ Cohen, Joshua. "Trump's Decision To Defund WHO For Coronavirus Response: Throwing The Baby Out With The Bathwater". Forbes. Retrieved 2021-07-08.