Crowd Funding Overview

Crowdfunding Market – a primer for entrepreneurs

There are over 1300 CrowdFunding websites in the world, and they have helped raise $17 Billion in 2015. Of this $11 Billion was in Debt (Lending) and the rest was Equity.

For those that don’t follow this market – Crowd Funding is when you get individuals to lend / loan / invest money in other individuals / companies / projects.

I believe this market will be a key driver of global change in the next decade and beyond. In the last few years, it has already had a great impact in the market and I suspect it will continue to do so.

Even if you don’t invest in startups, projects of small opportunities, you might have heard of Kickstarter, Indegogo, Kiva, Angel List or Donors Choose.

Crowdfunding allows normal individuals to back projects they care about, issues they consider close to their heart, buy products they have a connection with.

Kickstarter alone for e.g. has helped raise over $2 Billion in funds for almost 100K projects over 6 years.

For entrepreneurs in technology startups, there are many options including AngelList, GoFundMe and Fundable.

While it is hard to pinpoint the exact number of people participating in crowd funding campaigns, it can be safely said to be in the range of 15 to about 20 Million worldwide.

North America dominates funding raised and funders with over $9 Billion committed and raised, followed by lending in Asia and then Europe by $3 Billion each. Africa and others, round up the remaining.

Businesses and Entrepreneurs raised the most money at about $6 Billion, social causes followed by film and arts.

Typically crowd funding makes up <0.1% of any person’s investments and is not a part of their “asset allocation” in any way according to research by Massolution.

While there is no software entrepreneur’s guide to the crowd funding market that’s great, which I could recommend, I’d highly encourage you to review this Inc Magazine overview.

Over the next few days I was going to spend more time sharing what I have learned talking to a lot of people in this market, understanding the entrepreneur, crowd funding sites and investor perspectives.

I’d love to understand your questions – if there are specific questions, please mention them in the comments below and I’ll make sure to address them.

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One thought on “Crowdfunding Market – a primer for entrepreneurs”

  1. Mukund,I have been in the business of hiring solutions for over 20yrs now. Primarily driven by helping folks find their calling..it is only now I am conscious I am in the business of ‘finding people for jobs’ !

    Totally bootstrapped & a lifestyle biz I have made an amazing number of mistakes & so ..my firm & consequently me -have been a financial disaster 😦

    However I am now able to connect a lot of dots..& hope to monetize the network of candidates, globally to a large number of potential clients globally..courtesy a extensive collaborative network of recruiters …& provide the best LOCAL talent globally.

    The model would need a technical glue & hence ought to do well with a crowd sourced funding to be scalable & immensely relevant.

    The solution ought to be a referral based network of authentic profiles crowdsourced..aggregating demand & supply.

    Shall be glad to have your thoughts.

    Please advice how do I make it happen?

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