Ailing Formula One team Caterham have avoided financial peril after a successful crowdfunding campaign, which raised 2.3-million-euro ($2.9 million). The Oxford-based team's ventures have guaranteed a starting spot at the final race of the season in Abu Dhabi on November 23.

Caterham, previously operated by Tony Fernandes, plunged into administration last month with over 20-million-euro ($24.9m) owed to creditors. But the team will be participating in the last race after managing to bring in over 70% of the funding from their original targets.

"It's set to go. Everything's packed and ready. We are literally waiting for a contract to be signed," administrator Finbarr O'Connell told the BBC.

Although the initiative has fallen short of the initial total of 3.1-million-euro, the 2.7-milliom-euro generated from interested parties has secured a place on the grid for the last race of the season next weekend. Caterham has yet to record a single point in F1 racing.

Support flooding in

Smith & Williamson, the appointed administrators, looked towards crowdfunding to sustain the team's future for the short-team. The method of crowdfunding has been a rapidly-growing trend over the past seven years, especially for the start-up business community.

In the first 48 hours following the program's launch, more than 1.4-million-euro was raised to support the team, which will be represented on the grid by Swedish driver Marcus Ericsson. Fans could donate from 10 US Dollars upwards, while there "still needs to be more cash raised" said the company.

"In only a week the fans have made the impossible, possible," said O'Connell, one of Caterham's recently appointed administrators. "We knew that the best way to keep this team alive and attract possible buyers was to show that it's still a racing team and be in Abu Dhabi for the finale."

Caterham is not the only Formula One team to suffer a financial meltdown this season with Marussia folding before the US Grand Prix in Texas. The company ceased trading and around 200 employees were made redundant.

Meanwhile, Caterham's crowdfunding campaign was criticized by Red Bull team principal Christian Horner. "I don't agree with the fans having to fund a team," he said.

"The fans pay to be entertained by the teams, they shouldn't be having to pay for a team. The concept of that is wrong and shouldn't be allowed."

rd/ sm (AP, AFP, Reuters)