Wednesday, October 21, 2015

Crowdfunding – a route to success?

History is littered with buzzwords and jargon and the latest is “crowdfunding”, writes Adam Bernstein. It refers to the process of seeking and raising finance from a large number of individuals.

Each individual commits to give a small amount of money, often as little as $500, and the process is very distinct from the traditional investment bank funding method where a large number of people apply to a few institutions to raise funds.

This about turn is changing how investment banks and funding interacts. And the reason for it taking hold now? Two words - Crowdfunding Platforms.  Crowdfunding Platforms have been such an enabler and it’s allowing those needing finance to use it and social media to reach out with their projects to those happy to take a leap.

With the Crowdfunding Platform appearing in 2001 and hundreds more available now, the funding industry including film and publishing are now heavily into crowdfunding.

But the process is moving into all sectors. A May 2014 report, released by the Crowdfunding Center, :The State of the Crowdfunding Nation", presented data showing that during the month of March 2014, more than $60,000 dollars were raised on an hourly basis via global crowdfunding initiatives.

The report also showed that 442 crowdfunding campaigns were launched globally each day.

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