2,800 crowdsourcing and crowdfunding sites
In the second in a series of three posts, Dorothy Sanders looks at the two predominant funding models employed by project-based crowdfunding platforms.
The crowdsourcing and crowdfunding industry is picking up momentum at an exceptional rate. Validity of the models involved is now grounded in the ever-increasing size of the participatory crowd, the scale of the capital networks involved, and the unique value delivered to customers, communities, and investors alike. Astute expansion-stage venture firms are now decisively backing and further fuelling explosive high-growth in crowd-driven companies. With more than $280 million invested in 35 different crowdsourcing and crowdfunding platforms during 2011 — an average investment of $8 million per funding round — it is clear that the industry’s probationary period is over.
Crowdsourcing.org founder Carl Esposti offers this in-depth look at the crowdfunding bills now being considered in Washington, D.C. and how they could shape the future. This is the first post in a two-part series.
In the second part of a two-part series on the Crowdfunding bills currently stalled in the U.S. Senate, Crowdsourcing.org founder Carl Esposti addresses some of the central criticisms levelled at the legislation.
Driven in part by the explosion of vibrant social-networking media, the crowdfunding sensation now stretches to the far reaches of the globe. Fostering creativity, philanthropy, and growth, crowdfunding sites have fundamental social and economic impact, and are altering the allocation of capital.
In the last year alone over 65 crowdfunding platforms have been founded in more than 18 different countries around the world. From the Netherlands to the Philippines and from Romania to Canada, the crowdfunding phenomenon is strengthening its position as a globally disruptive force which challenges modes of traditional capital allocation. However, it is the rise of creatively-based crowdfunding platforms that has been truly meteoric. Of the 65 plus new sites launched this year an overwhelming 80% are focused on creative and artistic projects.
In this series of three short editorials on crowdfunding data, we dig deeper into the numbers on structures and ecosystems of crowdfunding platforms and discuss the perspectives accompanying these numbers.
Crowdfunding challenges traditional barriers to financing and by-passes conventional gatekeepers of investment. Democratising finance and revolutionising capital allocation, the radical diversification in the economic space brought about by the crowdfunding phenomenon is showing no signs of slowing. It has a potent driving force. As social media continues to perpetuate the growth and success of crowdfunded projects, it is clear that platforms are re-instating meaningful connections between the innovators on one hand and their audience on the other.
In the third and final post of this short editorial series on crowdfunding, we focus on the radical changes evolution in this industry is causing. Both in terms of eliminating financial gatekeepers and also the way in which social media engages the crowd as a dynamic and alternative source of funding. It is unquestionable that social media is the powerhouse behind successful crowdfunding projects. Here we delve a little deeper and consider some of the complexities behind this rapidly growing and networked layer of the new ‘sharing economy’.