Crowdfunding – fast Internet uprising or something more?
Today is a time for a brief, unromantic crowdfunding history – few words about how does it happen that people are loosening their wallets and believe in the specific project enough that they are able to finance him. Ready?
Crowdfunding let the authors to direct communication with recipients. Thanks to it members of individual niches can present their ideas to persons having similar tastes and if ideas will show themselves that they are accurate, the community will provide needed funds for their accomplishment.
As it is usually with ideas acknowledged too modern, similar ideas already existed in the past. In 18th and 19th century self-help movements in Ireland have often used fundings in order to finance new releases, often in small towns. Beginning of crowdfunding that we know now, driven with the power of Internet, had his place in 1997. Leading representative of neoprogressive rock, Marillion band, managed to collect 60 thousand dollars from its fans for preparing a concert tour.
History – have a look!
In 2009 in New York Perry Chen, Yancey Strickler and Charles Adler are inaugurating switching the new crowdfunding platform. The idea came into existence after it appeared in Perry Chen head, when he wasn’t able to find funds for the cost recovery of his jazz concert. This way Kickstarter comes in. Over 13 million people decided to support authors during fundings and almost 4.25 million from them supported more than one project. 241 projects collected the million or more for the realization of their promises. Kickstarter is operating on the crowdfunding model named “all or nothing”. While creating campaign the author sets the sum which is for him essential to fulfil the given plan. He has a month for collecting.
Quick crowdfunding development
Progress of the new way of financing the projects is exceptionally fast. In 2011 the amount of collected money already with community exceeded billion of dollars. This sum is doubling year by year and leaves no breathlessness. Of the same year, the number of people which supported at least one project on kickstarterze exceeded the million.
In 2015 worldwide crowdfunding brought 35 billion of dollars altogether to authors of projects. They say that in 2025 it will bring 300 billion dollars. The more products incurred with the help of crowdfunding will come the market across, the more confidence in this form of financing will grow.
According to the suggestion, shareholding crowdfunding will become soon the main source of financing the startups, leaving traditional methods far back.
Crowdfunding changed the rules of the game. It made the authors independent of rich producers, let entrepreneurs develop their businesses without the interference of wealthy investors. Now consumers decide whether they are interested in a given product, or not. Crowdfunding made world more democratic, more decentralised and will be changing it for better in the following years.