The future of crowdfunding

BY  , 

Crowdfunding is taking the entrepreneurial financing world by storm, changing the way everything from startups to art projects get funded. When traditional bank and VC financing leaves many entrepreneurs and projects high and dry, crowdfunding can bring in much-needed cash.


The majority of crowdfunding money raised today is on rewards-based platforms like Kickstarter and Indiegogo (a Version One portfolio company). With these sites, fans of a project typically get some kind of incentive, from a t-shirt to an early prototype, in return for their donation. In addition to rewards-based, the equity crowdfunding market is beginning to hit its stride with platforms like AngelList andCircleUp. Here investors receive a share of the company in exchange for funds.


By the end of this year, crowdfunding is projected to add more than $65 billion into the global economy, yet in many ways the market is still in its infancy.


As the space matures over the next few years, I expect three important trends to emerge:


Trend #1: Vertical platforms will focus on specialized market 



Trend #2: Project-based models will make way for longer-term support

patreon1Today’s standard crowdfunding model involves a one-time fund drive for a particular project, milestone, or cut-off point. This approach works well in certain situations, such as a hardware startup looking for seed money to build a prototype and demonstrate market interest. Then successful crowd-funded hardware projects often go on to receive VC funding to build their business.

However, the one-and-done model doesn’t work for everyone.

Crowdfunding campaigns are expensive to organize and promote, and not all projects are designed to be self-sustaining when complete. New crowdfunding sites provide an ongoing pipeline of support. For example, Patreon lets people support their favorite artists, rather than backing a single film or art installment.

Read More!



How Crowdfunding Has Changed the Startup GameSingularity HubCrowdfunding has become a multi-billion-dollar industry, funneling millions of dollars into thousands of projects. Technology in particular is one of the leading categories on popular fundraising platforms like Kickstarter an [...]

The GuardianCrowdfunding: the new buzzword for academics needing research moneyThe GuardianArchaeologist Dr David Petts, from Durham University, has also used crowdfunding, raising almost £25,000 to fund a project on Lindisfarne, off the Northumberland coast. The dig, in June, led to [...]

Airbitz, BitPay, and Wefunder leverage bitcoin and new US ...Brave New CoinEquity crowdfunding platform, Wefunder, recently started accepting bitcoin. On the same day, popular bitcoin mobile wallet provider Airbitz announced the ...Wefunder Launches 10 New Regulation Crowdfunding Offe [...]

CNNMoneyDorothy's fading red slippers saved by $300000 in crowdfundingCNNMoneyThe ruby red slippers worn by Judy Garland in the beloved 1939 film "The Wizard of Oz" are set to undergo a major conservation effort following a successful crowdfunding campaign. The Smithson [...]

Raise Money for Personal Bills on Crowdfunding SitesKiplinger Personal FinanceWhile crowdfunding is often associated with business start-ups, many people are finding it a fruitful way to raise money for personal needs. Sites such as YouCaring, GoGetFunding, GoFundMe and GiveForward ha [...]

Crowdfund InsiderReport: Title II Crowdfunding Data on Three Year Anniversary Tops $1.47 BillionCrowdfund InsiderFifty Dollars Money Grant Crowdnetic has published its annual Crowdwatch report on Title II investment crowdfunding as enacted under the JOBS Act of 2012. Title II, or Reg [...]

How The Fix Crowdfunding Act Continues To Help Improve The Success Rates Of Small BusinessesCBS LocalIn July of this year, Republican Patrick McHenry from North Carolina spearheaded two important bills. Both passed through the House in a landslide vote as part of The Fix Crowdfunding [...]

BloombergCouples Desperate For Children Turn to Crowdfunding FertilityBloombergCrowdfunding has become a popular mechanism for many couples who can't afford the high costs of IVF, or adoption and surrogacy. “It's not an easy thing to share publicly,” says Crystal Barrett, 33 [...]

City turns to crowd funding to help replace boardwalk over Flint RiverMLive.comFLUSHING, MI -- The city of Flushing has opened a crowdfunding campaign to replace a wooden boardwalk over the Flint River. The goal is to raise $50,000 in 60 days on Patronicity, a crowdfunding website, to [...]

AZCentral.comTiny companies lure investors under Arizona crowdfunding lawAZCentral.comInvestors who make bets under the state's one-year-old crowdfunding law certainly have the potential to get in on the ground floor, but they must be patient and might not receive any returns. Th [...]

CFB Finance

Press Release

Live Crowdfunding .tv

What's Next Step in Regulation A+ JOBS ACTS Title IIII :L Interview : Steve Cinelli with Brian Korn Securities and Crowdfunding/Peer-to-Peer Lending Lawyer, Watch more video library | Conference | Interview | Campaign Showcase | Research | Education |