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Funding is the act of providing financial resources, usually in the form of money, or other values such as effort or time, to finance a need, program, and project, usually by an organisation or government.
Generally, this word is used when a firm uses its internal reserves to satisfy its necessity for cash, while the term financing is used when the firms acquires capital from external sources.
Anyone who is interested can pledge on the projects.
Projects must reach its targeted amount in order for it to be carried out.
Research and development departments of a corporation normally provide commercial research funding.
Whereas, non-commercial research funding is obtained from charities, research councils, or government agencies.
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By displaying high-level potentials of the projects, investors would be more attracted to put their money into those projects.
After certain amount of time, usually in a year’s time, rewards of the investment will be shared with investors.
This makes investors happy and they may continue to invest further.
Organisations that require such funding normally have to go through competitive selections.
Only those that have the most potential would be chosen.
Government could allocate funds itself or through government agencies to projects that benefits the public through selection process to students or researchers and even organisations.