Authors Document the Nascent ‘CrowdFunding Revolution’

By Robert J. Mullins
Senior Staff Writer

Nov. 6, 2013 — Crowdfunding is described as a natural extension of the crowdsourcing enabled by the creation of the Internet and as a new way to raise venture capital to help create the next great company, according to two authors deeply involved in the subject.

“The Crowdfunding Revolution: How to Raise Venture Capital Using Social Media” was self-published by co-authors Kevin Lawton and Dan Maron in 2010 and a second volume was published by McGraw-Hill in 2012.


The book was itself a product of crowdsourcing with Lawton blogging about the subject from Silicon Valley in California and Maron providing an academic point-of-view from Tel Aviv, Israel. In fact, both men collaborated on the book largely via Skype and only met in person for the first time at an academic symposium on crowdfunding held at the University of California-Berkeley in October.

In an interview with CrowdFundBeat’s Richard Bliss (link), the authors explained the significance of crowdfunding and, in particular, crowdfunding as an adjunct to venture capital financing.

“We have an alternative entrepreneurial finance mechanism that could become viable,” said Maron. “I deeply believe that the crowdfunding revolution will have its impact in the next few years.”

Crowdfunded venture capital is just on the horizon in the U.S., as the Securities and Exchange Commission (SEC) recently released 585 pages of proposed rules governing the solicitation of equity crowdfunding investments by “non-accredited” investors; the SEC recently enacted a separate set of rules permitting equity crowdfunding, but only by “accredited” investors.

Until now, most crowdfunding in the U.S. has been reward-based crowdfunding in which donors to a campaign get a token gift as simple as a t-shirt or a copy of a product being developed by a start-up. Often they donate simply as a show of support for the project.


Equity-based crowdfunding can present a new opportunity for venture capitalists or angel investors, said Lawton.

“For them, it is more of an opportunity to do something different; it’s something different that they need to know about,” he said, adding that the book is part of an effort to educate those professional investors and investors at large on the value of crowdfunding.

In the book, Maron and Lawton detail the development of crowdfunding as of a piece with the development of the Internet in general and crowdsourcing in particular.

The Internet connected billions of people around the world who could exchange information and ideas. From that developed crowdsourcing, examples of which range from oil and gas research, the search for extraterrestrial life and problem solving to restaurant and movie ratings, the authors wrote.

CrowdFundBeat is publishing this excerpt of “The Crowdfunding Revolution,” which is available at, among other locations, as an e-book or hardcover book.




FortuneDreamHost Sets Up Crowdfunding Page to Aid Trump Government FightFortuneThe Los Angeles-based web host DreamHost, which is fighting the Department of Justice over its attempt to seize records of visitors to an anti-Donald Trump website, has launched a crowdfunding campaign to a [...]

Baltimore SunHarford still opposes crowdfunding sites for school donationsBaltimore SunRaising money through online crowdfunding sites is an ideal way for teachers to find the funds to purchase classroom materials and should be restored, the head of the Harford County teachers' u [...]

U.S. News & World ReportNo Cash for Hate, Say Mainstream Crowdfunding FirmsU.S. News & World ReportThe block on mainstream crowdfunding is just the latest blow to far-right activists operating online. In the last 24 hours, neo-Nazi website the Daily Stormer had its domain regi [...]

GeekZing Smart Light Passes Crowdfunding Goal With Flying ColorsGeekIn just five weeks, San Diego-based Team Zing has more than doubled its crowdfunding goal of $52,500, collecting nearly $125,000 from 1,115 backers. There are still five days to snag your own smart night light, availa [...]

Regulation Crowdfunding: Considerations Before Crowdfunding Your StartupLexology (registration)For startups looking to raise capital, crowdfunding looks to be to a modern solution to capital-raising concerns. In 2015, the SEC issued a rule on crowdfunding (“Regulation Crowdfunding”), [...]

LITTLE GUIDANCE FROM IRS ON TAXING CROWDFUNDING CONTRIBUTIONSBloomberg BNAWhether it's a musician raising money to produce an album, an inventor with a great idea, or a family in distress that needs help, crowdfunding through platforms such as Indiegogo and Kickstarter has become [...]

Crain's Cleveland Business'Smaller' gifts can go long way for Clinic's crowdfunding platformCrain's Cleveland BusinessFor an institution accustomed to securing multimillion-dollar donations, Cleveland Clinic's latest fundraising effort has some relatively [...]

Business 2 Community5 Quick Tips to Relaunch a Crowdfunding CampaignBusiness 2 CommunityIn its basic form, crowdfunding is raising small amounts of money from a large number of individuals. To get started, fundraisers choose a platform, share their story and tell family and friends wh [...]

ForbesWhat Works In Equity Crowdfunding -- Insights From ResearchForbesAs we have recently celebrated the fourth anniversary of the signing of the JOBS Act into law, it is a good time to take stock of the effect that the legislature had on equity crowdfunding in the United States. It [...]

Reuters (press release) (registration)Crowdfunding: Funding ideas the right wayReuters (press release) (registration)The term “crowdfunding”, or “crowdsourcing”, refers to an open call made to the world via the Internet to solicit funds from interested parties to finance a business or [...]

CFB Finance


  • Crowdfunding
  • Crowdfund
  • Peer to Peer Lending
  • FinTech
  • Reg A+
  • Reg CF
  • Crowdfunding USA

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 |