Crowdfunding Predictions for 2016

2016 is less than a month away and the crowdfunding scene continues to explode every time new projects hit their milestones in record times. There has been a fair share of good news and bad news in the industry but we can all expect even more defining moments next year. Here’s just a small glimpse on some of the things I think would take place next year.

Crowdfunding Regulations

2016 could very well be the year where governments all over the world will embrace the world of crowdfunding and refine the necessary laws to properly integrate crowdfunding into modern business practices. For instance, the U.S. Securities and Exchange Commission modified their JOBS Act to allow companies in the U.S. to sell and offer securities by means of crowdfunding. This is also known as “Regulation Crowdfunding”.

In Canada, the Multilateral Instrument 45-108 Crowdfunding will go into effect this January 2016 opening up all sorts of new avenues for companies to raise capital. This could really bring equity crowdfunding into the mainstream.

More Crowdfunding Efforts from Big Companies

This year was pretty interesting because big companies are banking on the crowdfunding craze. We have big game developer teaming up with Sony that raised a ton of money on a game many fans wanted to see and then there is Sony themselves crowdfunding a smartwatch and finally getting a release.

It is unlikely for tech giants like Apple and Google to resort to crowdfunding as they have huge war chests but could struggling companies like BlackBerry give it a try? It could happen.

Better Product Pitches

2015 was also a year of crash and burn for some successfully funded products. The Coolest Cooler is getting a lot of flak from loyal backers due to supply chain issues while the company behind this tiny drone will shut down due to manufacturing problems leaving backers with nothing. More people are aware of the risks of backing a hardware-based product and I believe that project creators are going to step up and prove them wrong.