crowdfunding: how people are changing the face of funding

‘//’The

NEWMedium

|How people

are changing

the way

projects are

funded

By Matthew Eng

Image by Rocio Lara (flickr)

crowd·fund·ingˈkroudˌfəndiNG

Noun

the practice of funding a project or venture

by raising many small amounts of money

from a large number of people

Image by Simon Cunningham (flickr)

Image by Martin Hajek (flickr)

The Pebble Smartwatch,

by Pebble Technologies,

was given

$10,266,845in donations, exceeding their

goal by 10,266%(source: Kickstarter)

The Veronica Mars Movie, based on a TV show,

garnered $5702,153 in donations, exceeding

their goal by 285% (source: Kickstarter)

Image by Joits (flickr)

Image by Colbrain (flickr)

… giving the creator

full creativity over the project.

Image by Linus Bohman (flickr)

“Creativity requires the

courage to let go of

certainties.”

- Erich Fromm

People who believe in the vision will aid financially to the

development of the final product. You better make them happy

though!

Image by Rick Turoczy (flickr)

Crowdfunding will

become the most

widely used

platform for major

& minor project

funding within the

next 5 years.

Image by Brian Cypher (flickr)

How are creators responding to this trend?

Image by Alex Barth (flickr)

So far…

1,000,000+ successful campaigns were made in

2012, 81% higher than 2011Image by Steve Wilhelm (flickr)

$5.1 billion in funds were

raised worldwide for crowd-

funded projects in 2013.Image by Sandor Weisz (flickr)

Image by Eric Fischer (flickr)

How big of a scale should I set for my project?Image by Jon Lee Clark (flickr)

The average successful

campaign is

approximately $7000 and lasts 9 weeks.

However…

Image by Jason Hargrove (flickr)

Image by Bill Abbott (flickr)

What type of

project should I

choose?

Image by Brian Hillegas (flickr)

The most popular

type of project is a

social cause (30%).

Others include

entrepreneurship

(16.9%), film/art

(11.9%), music

(7.5%), and

environment (5.9%).

However…

Image by Kathryn Harper (flickr)

Start something you enjoy!

Your passion with spread

towards others and will create

interest in your project.

Image by Rex Hammock (flickr)

A successful campaign requires

grassroots marketing and peer-to-peer

communication (it’s attractive to millenials).

Image by Ed Yourdan (flickr)

Most likely generation to

donate to nonprofits and

projects

Image by @Doug88888 (flickr)

Millions of startups have been brought to

life through crowdfunding platforms, and it

will only increase going forward.

Will you be a part of the

revolution?

Sources:

Anderson, T. (n.d.). Kicking Ass & Taking Donations: 9 Tips on Funding Your Kickstarter Project. 99U. Retrieved May 23, 2014, from http://99u.com/articles/7143/kicking-ass-taking-donations-9-tips-on-funding-your-kickstarter-project

Burma, D. (n.d.). Crowdfunding Trends and Statistics Infographic. CrowdMapped. Retrieved May 23, 2014, from http://www.crowdmapped.com/crowdfunding-trends-and-statistics/

Grant, R. (2013, April 24). Crowdfunding vs. seed funding: All money is not created equal. VentureBeat. Retrieved May 23, 2014, from http://venturebeat.com/2013/06/24/crowdfunding-vs-seed-funding-all-money-is-not-created-equal/

Why Millennials Are the Ideal Target Market for Crowdfunding. (n.d.). www.crowdsourcing.org. Retrieved May 23, 2014, from http://www.crowdsourcing.org/editorial/why-millennials-are-the-ideal-target-market-for-crowdfunding/31988

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