CrowdFunding Economy, just getting started


By Kyle Chayka,

The Internet has broken down a lot of barriers in the world of what we have euphemistically deemed “content creation.” With websites, newsletters, and social media profiles, anyone can publish and promote anything, from blogs to books and feature films. In a perfect world, this means that the usual barriers to entry blockading creative people from reaching a public audience have fallen. But in the wide-open world of digital publishing, we’ve also all become a lot more accustomed to getting our media for free.

Such is the dilemma: Getting everything for free from creators who are only rewarded with exposure is unsustainable, but having to pay for everything we consume means we won’t get to see it all. Consumers are currently spoiled for choice, but content creators who want to make a living from their work have to decide on the best way to monetize their art.

Enter crowd-funding, which is remaking how money flows between artists and their fans. By gathering small amounts from many sources and aggregating it into more meaningful sums that are donated to single causes, crowd-funding sites are directly supporting creators who had previously relied on advertising or traditional publishing for income. And the crowd-funding economy is only just getting started. One report estimates that by 2025, crowd-funding will hit $93 billion annually.

Kickstarter, which handled $480 million in donations last year, and Indiegogo, which processed around $100 million, are currently the biggest names in crowd-funding. The two sites have raised money for major projects, like $10 million for the Pebble smart-watch and $12 million for a Linux-based smartphone.

But as big as they are, the sites have their flaws. By focusing on complicated reward structures, they often force creators into focusing more on mailing packages than working on their projects. They also have little accountability for creators to deliver on their promises, since donations don’t amount to outright purchases. This has lead to projects like the Galileo motion camera and the i+ iPhone case, which funders are calling scams after receiving nothing but excuses for their money.

Jack Conte, a California-based musician, set out to fix these problems with Patreon, a crowd-funding platform launched last May. Conte is one-half of the band Pomplamoose as well as the proprietor of a popular YouTube channel where he posts in-studio music videos. His videos were regularly getting 100,000 views, but YouTube’s advertising system was only generating $50 or $100 each. “I felt like there was a community around my videos,” he says. “I just felt that couldn’t be true, how can my video only be worth $50 on the Internet? The system was broken.”



DVS Gaming (registration) (blog)Crowdfunding: How Does it Help Indie Developers?DVS Gaming (registration) (blog)2012 is when crowdfunding really blew up, prior to 2012 the average amount of money devs would receive could range from 10k-100k. By today's standards, that's stil [...]

LivemintFinding the right balance on crowdfundingLivemintSecurities market regulator Sebi (Securities and Exchange Board of India) has been trying to get a handle on digital platform-based crowdfunding since at least 2014, when it issued a cautiously positive consultation paper. It fl [...]

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 [...]

FortuneUncensored Social Network Gab Raises $1 Million in Crowdfunding CampaignFortuneA crowdfunding campaign for Gab, a Twitter-like social network that touts its commitment to freedom of speech, surpassed $1 million yesterday. The company claims it is politically neutral and committ [...]

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 [...]

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 [...]

FanRag Sports (blog)Is crowdfunding women's hockey the new normal?FanRag Sports (blog)The Western Collegiate Hockey Association is a women's college conference founded in 1999. In 18 competing seasons, the WCHA has won 16 national titles. Only twice has an NCAA women's [...]

League: Warriors legend Monty Betham drops crowdfunding bidNew Zealand HeraldFormer Warriors Monty Betham has pulled the pin on his quest to launch a crowdfunding campaign to buy the Warriors. With Warriors owner Eric Watson locked in negotiations to sell, Betham made a plea to league [...]

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 [...]

The Northern Daily LeaderThe perks and pitfalls of crowdfundingThe Northern Daily LeaderWith a few clicks, would-be entrepreneurs, artists and charities can launch a project and start crowdfunding. All they need to do is nominate a dollar goal to raise within a certain time, and list [...]

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 |