Crowdfunding and Second line of defence: Difference between pages

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Capital for early stage businesses supplied by large numbers of individuals making relatively small individual investments, often facilitated online.
The first, second and third lines of defence are identified by the Bank of England in relation to establishing and defending fair and effective markets.


This can be an alternative to bank funding.
These 'lines of defence' are the governance and controls to protect against risks in an organisation.




The motivations and rewards for entering into crowdfunding can range from:
The second line of defence is an independent oversight function - commonly the risk functions monitoring each key risk category.


* Essentially donations for a good cause, or a cause the donors are motivated to support (for non-financial reasons).


:An example could be to keep local shops open, that would otherwise close down as not being commercially viable.


:The 'rewards' are essentially add-on motivation.
==See also==
 
*[[First line of defence]]
 
*[[Third line of defence]]
* Funding motivated by the financial interests of the funders.
*[[Three Lines of Defence Model]]
 
:This will normally be in the form of ordinary shares (equity).
 
 
 
== See also ==
* [[Business angel]]
* [[Crowdsourcing]]
* [[Debt]]
* [[Entrepreneur]]
* [[Equity]]
* [[Private equity]]
* [[Seed]]
* [[Venture capital]]
 
 
===Other links===
[http://www.treasurers.org/node/9426 Two-fifths of SMEs that seek funding are rejected, Sally Percy, The Treasurer September 2013]
 
[[Category:The_business_context]]
[[Category:Corporate_finance]]
[[Category:Investment]]
[[Category:Long_term_funding]]

Revision as of 22:23, 13 November 2016

The first, second and third lines of defence are identified by the Bank of England in relation to establishing and defending fair and effective markets.

These 'lines of defence' are the governance and controls to protect against risks in an organisation.


The second line of defence is an independent oversight function - commonly the risk functions monitoring each key risk category.


See also

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