The future and fears of crowdfunding.

The Gherkin London

The Future and Fears of Crowdfunding

Recently I was asked to write a piece for the donation based crowdfunding platform YouCaring based in the USA.

They asked me two questions.

  1. How do you see crowdfunding changing in the upcoming years?
  2. Is there anything about crowdfunding that scares you?

Now there are a variety of answers here but I decided to tackle each question with a single reply for each.

Here is the answer to the first question:

How do you see crowdfunding changing in the upcoming years?

The crowdfunding scene is becoming more complex with each passing year.

Besides new crowdfunding platforms emerging every week there is a plethora of support services also coming on stream. Where is it all going to end?

Crowdfunding is about unlocking funding for new and exciting projects benefiting not only the project creators but those that they serve as well. Each new day is turning up different ways where crowdfunding can help.

However, in amongst all this change, fundamental success factors remain the same for both those raising and/or investing in campaigns.

Knowing what these success factors are will help us shape and navigate the future of crowdfunding.

Here is the answer to the second question:

Is there anything about crowdfunding that scares you?

Yes – I get approached everyday by project creators asking why no one is supporting their crowdfunding campaign.

The assumption that there are huge numbers of people trawling the internet wishing to back crowdfunding campaigns is false.

Here’s the rub – strangers do not fund crowdfunding campaigns.

The secret to crowdfunding is in the name. If you do not have an engaged crowd you cannot go crowdfunding. It is as simple as that.

BEFORE you go crowdfunding you need to build a crowd, grow an existing crowd or borrow a crowd. This can take months if not years.

This to me this is the biggest reason why so many crowdfunding campaigns fail. It is also the biggest lesson we can learn and need to correct BEFORE we go crowdfunding.

I would like to see more educational opportunities being created to help as many of us understand all the success factors that we need to have in place before we go crowdfunding.

Happy to hear your ideas on where you think crowdfunding is going.

Drop me a message via the contact page or one of my social media profiles and I will reply to you 🙂