You’ve no doubt heard about crowdfunding at this point in time through sites like Kickstarter and Indiegogo, it’s one of the most popular ways to raise funds for your project out there. In case you haven’t, the premise is simple: you put your project on the web for all to see and say you need some amount of money to continue, people from all around the world will look at your project and decide if they like it, if they like it enough they give you money, if enough people give you money your project succeeds and you get your money along with a fantastic fan base to boot! In exchange you give them pledge packages based on how much they gave to you, be it a thank you card for a $5 donation or a full blown weekend on the set of your film for a $10,000 donation. It’s a brilliant way to raise money with the advent of social media and the web being so accessible to the world.
A Couple Crowdfunding Numbers for You
In preparation for our Crowdfunding 101 Presentation with the OTBC on Sept 26th I’ve been going back through my research from 2011 and updating it with new 2012 data and estimations. The group of people and the amount they have pledged has grown massively over the past two years; growing from $27.6 million pledged in the year of 2010 to $228 million in the first 9 months of 2012, almost 10 times what was pledged in 2010 in 3/4 the amount of time. A rough estimation on my part from the data tells us that likely over $273 million will be pledged by the end of this year. And that’s just Kickstarter, there are plenty of other crowdfunding sites to look at. Our presentation will go into detail on these and other data as well as how you can use crowdfunding to your advantage. Read more about our presentation here
It doesn’t take a lot of thinking to realize that there is a very real trend going on here. Large project funding is being democratized. There have been over 2,300 successful projects that have funded more than $20,000 to their project on Kickstarter alone (11 raised over $1m). Many of these project likely wouldn’t have received the coverage and momentum they did without the use of crowdfunding. Crowdfunding is placing the power back in the hands of the people. If you want to help people succeed in their ventures but don’t have $10,000 of capital to give to the project that’s absolutely fine, $5 and a social share work pretty well towards helping a young project get its legs.
Crowdfunding is Changing the Way We Look at Project Funding
Crowdfunding is here to stay and it’s only going to get bigger. It broke down the gate to getting every day people involved with projects around the world, in true fashion of the internet. It’s another sign that the internet brings people together from around the world (and even off the world if you count the ISS). If you haven’t already, definitely check out Kickstarter and Indiegogo to start with and if you’re up to it, move on to the plethora of other crowdfunding sites out there! Some of the biggest splashes on the web have come from these sites, why not get involved?