Crowdfunding is the collective effort of individual donors or investors who pool their financial resources, typically online, to help fund or start a business, project or cause. Projects funded through sites like Kickstarter are posted with a financial goal and timeline. People make pledges for projects they want to support. When projects reach their financial goals, they are funded.
Popular crowdfunding sites include Kickstarter, GoFundMe, Wefunder, Start Some Good, Rocket Hub, Rock the Post and Indiegogo are a new way for entrepreneurs to raise capital for businesses and projects.
- Other crowdfunding sites like Go Fund Me are funded as they go, where people visiting the site pay immediately.
- Since its launch in 2009, Kickstarter has launched more than 92,000 creative projects in 13 categories (e.g., music, film & video, art, technology).
- On Kickstarter, 39,000 projects being successful funded for a success rate of nearly 44%.
- More than 3.7 million people have pledged more than $554 million in funding through Kickstarter projects.
- When the JOBS Act is enacted, sites like Wefunder can fund start-ups, giving the average consumer the opportunity to invest in a startup company for as little as $1,000.
Source: Crowdfunding: Where Dollars and Dreams Meet
