Crowdfunding raised $1.5B last year — and is on track to double in 2012. Until Kickstarter started gaining attention for giving people a place to raise huge amounts of money very quickly, the term crowdfunding didn’t mean much. Now, crowdfunding has become a full-fledged industry, contributing $1.5 billion to new ventures in 2011. That total includes pledges from average people backing quirky projects like the Pebble smartwatch as well as seed funding for startups. The first ever Crowdfunding Industry Report, from research firm Massolution, reveals that crowdfunding platforms, such as Kickstarter and Crowdfunder, raised $1.5 billion spread out over one million campaigns in 2011. Of that $1.5 billion, $837 million came from North American investors. The Crowdfunding Industry Report examined four types of crowdfunding worldwide: equity-based, donation-based, lending-based, and reward-based.
Equity-based crowdfunding, in which funders get a stake in the company, raised the most money per campaign in 2011. Adding fuel to the fire is a shift in the legal climate.
Crowdfunding isn't a quick fix for charity fundraisers | Voluntary Sector Network | Guardian Professional. Crowdfunding has seen huge growth in America over the last few years, particularly since it was used to fund Barack Obama's presidential campaign in 2008. Websites such as Kiva and Kickstarter have enjoyed phenomenal success, raising millions for a vast array of projects, from the charitable to the creative. And recently there has been a swell in the growth of similar sites in the UK, set up to raise money for projects with a social purpose. The sites allow organisations or people to raise money for a project online through multiple donations or loans made by a number of donors over a short space of time. Most sites only take people's money if the project reaches its total fundraising target in the set timeframe. Donors will often receive something in return for their gift, such as a money-can't-buy experience.
Their growth in the UK was exemplified in February when they received 18% of the first funding round from the Innovation in Giving Fund. "That's changing though," she says. Crowdfunding Market Analysis - Mymicroinvest.com. Investissez aux cotés de professionnels dans des entreprises innovantes. Crowd funding is classified into four distinct categories. Based on the category money is lent for different causes such as charity, consumer lending, creative support and business growth. a) Charity and social investment : Charity and social investment oriented Crowd funding is based on charity.
Social investment’s command 15 % of market share among the categories of crowd funding Charity oriented crowd funding platform is based on small donations. Normally money is lent on 0% interest to loans with social and non lucrative projects. Here loan is normally given for social cause. The main player in this cateogry is KIVA.org, an NGO that connects contributors with micro entrepreneurs in developing countries. B) Consumer lending: Consumer lending garners a chunk of 80 % market share in crowd funding. Borrowers are selected by the platform and the lender community does proper validation. Zopa.com, which was launched in 2005, is one of the leading players in this category. C) Creative Support:
KissKissBankBank — Let's fund creativity together! Kiva - Loans that change lives. Can We Say Crowdfunding Bubble? U.K. Charity Launches Directory To Help Navigate Nation’s 30+ Local Platforms. How many crowdfunding platforms is evidence of a crowdfunding bubble? Well, when an organisation feels the need to launch a directory to list and detail all of the crowdfunding options in a single market it’s perhaps a sign that exuberance for crowdsourced financing is running a little high. Nesta , a U.K. charity focused on promoting national innovation, has launched just such a directory, detailing the U.K.’s crowdfunding landscape — and all, by its count, 31 current crowdfunding platforms up and running and begging for money on your behalf.
The CrowdingIn directory certainly looks like a useful resource if you’re trying to figure out how best to get your next project funded, with the ability to filter by model and sector/area of interest. So, for example, if you’re looking for an equity investment model in the arts-creative sector then using the directory quickly narrows down those 31 platforms to just one . Find a crowdfunding platform | CrowdingIn.
How to Use Crowd-Funding Sites to Raise Money for Your Non-Profit. Of all the innovative advances in online fundraising over the past decade, one of the most impressive has to be the rise of crowd-funding websites. Some of these sites, like Fundraise.com, CauseVox and Fundly were set up specifically to help non-profits raise money to support their causes.
Others, like Kickstarter and indiegogo, aren’t non-profit specific but have been used by charities to raise money to support their mission. Today, let’s talk about crowd-funding websites for non-profits: what they are, and how your organization can use them to raise more money quickly and efficiently. What Crowd-Funding Sites Are While features differ from site to site, at their most basic crowd-funding sites are websites that allow your non-profit to set up an online fundraising campaign based around a fundraising page, and accept money directly from that page using the website’s own credit card processor. What Crowd-Funding Sites Are Not Which Crowd-Funding Site will Work For You? 1. 2. 3. 4. 5. 6.
Other fundraising methods. Fundraising page providers. Crowdsourcing.