It is now 2019, and Crowdfunding is widely used as one of the most popular methods for funding new emerging technology for those in need, and new business ventures. In this article, we are going to be covering the most used Crowdfunding methods, and why these methods are emerging in 2019. We will also look at the past, to see where Crowdfunding came, and how it is ever evolving.
Learning about Crowdfunding
Starting with the present, thanks to Crowdfunding, many inventors can introduce their new ideas to the public by creating a functioning prototype. Cryptocurrencies have been on the rise in recent years due to the popularity of the ICO (Initial Coin Offerings) Crowdfunding campaigns. The successful ICO campaigns have paved the way to add new cryptocurrencies on to the market. This is just the brink of the success of the Crowdfunding market.
Many developing countries are now taking advantage of this widely used method of funding by creating their own Crowdfunding platforms, and campaigns to help support those in need. Crowdfunding started as a way to fund for either charities or creative projects on widely used Crowdfunding platforms like Kickstarter and Indiegogo. Now, Crowdfunding can be used to fund anything from personal causes, to disaster reliefs, international businesses, cryptocurrencies, and real estate.
Crowdfunding is an effective form of internet marketing, and using your social network to help raise funding. It can be very useful for those that have a large social network or following. This provides the opportunity for celebrities and other social influencers to expose great causes to their fans to help raise money for a particular cause.
Although this method of funding is designed to help those to raise funding for good causes, it can also be abused. Many platforms have a strict verification process to capture the identity of those running Crowdfunding campaigns on their platform, but there are times when a fraudulent campaign can emerge. This is something to watch out for, and can be further avoided by researching, and doing your due diligence before lending money to any campaigns.
Although you cannot pinpoint the exact number of Crowdfunding platforms globally, there are an estimated 600+ platforms running today that will take a larger share of the Crowdfunding space in 2019.
What are the emerging trends for 2019?
Among the various Crowdfunding paradigms, lets look at the emerging 2019 trends for the popular types of Crowdfunding paradigms.
Equity & ICO
In the past, it was hard to participate in the equity Crowdfunding campaigns without being an accredited investor. From the emerging equity, and other types of Crowdfunding platforms available, there is more opportunity for those that want to invest into the companies via those routes, and equity for those that are non accredited investors. This will continue to be available to the public in 2019.
For those that are interested in the ICO’s. This has recently been on a decline due to various factors. There may not be as many ICO’s in 2019 as seen in the recent years.
Donations based campaigns
As described earlier, the charity and disaster relief based Crowdfunding campaigns are now easier to fund than ever thanks to the access to social networks, and the technology to run a campaign on any website.
New technology and innovations
Introducing a new invention to the public will continue to be a popular Crowdfunding method. Adding rewards is very easy, and accessing a large network of potential customers now easier to research if comparing the successful Crowdfunding campaigns of the past. There are many resources, and technology that innovators can use to get their product on to the market without being tied to a single platform.
We hope to see new forms of Crowdfunding grow in 2019, to help change the world for the better.