This Week in Crowdfunding (ending August 9, 2015)

Crowdfunding news, this week in crowdfunding
Zack Miller, Crowdfunding Expert

The crowdfunding space is quickly changing.

Whether it's new entrants into the marketplace, new rules and regulations, or existing players getting investments into their companies, the crowdfunding market is growing by leaps and bounds.

For more info on crowdfunding, see my recent article on the benefits from crowdfunding you probably didn't think of and how to create awesome rewards for your crowdfunding campaign.

Here's what we were reading this week about crowdfunding:

Crowdfunding schools, one project at a time (CNBC)

Over $300 million has come in via DonorsChoose, a crowdfunding website for people to support classrooms that matter to them. Instead of just sending donations in, teachers can raise money for specific projects. Watch this interview on CNBC with DonorsChoose's founder and how his company is changing the way teachers can fundraise important projects.

The hero of GenCon 2015: Crowdfunding via Kickstarter (MotleyFool)

For 40 years, gamers have been converging yearly to celebrate gaming at GenCon, the largest US convention for gaming. This year's even was a bit different and crowdfunding had something to do with it: Instead of honoring a specific game or designer, the story for 2015 was about Kickstarter and the role the crowdfunding platform is playing in the launch and financing of new games.

All I can say for certain is that thanks to Kickstarter, a lot of small entrepreneurs who once had nothing more than a great idea, but no money to fund it, have now morphed into actual, viable small businesses. And as they showed at GenCon 2015, they now have the products to prove it.

Check out the story.

Crowdfunding: Coming soon to a TV near you (Entrepreneur)

Fundraising via crowdfunding is part marketing campaign and part 60-day live telethon. The excitement that crowdfunding brings to the market hasn't been lost on the media and now, there's a new program in the works that looks to capitalize on the excitement around crowdfunding. Crowdfunding platform, RocketHub has teamed up with OvationTV to create some programming around crowdfunding.

The television special will feature three artists and will tell their story, what they are working on and what it is like to raise money on a crowdfunding platform.

Lest you think that this is just another reality TV show, it appears the idea has legs and could be like a more modern version of American Idol or The Voice.

“Ovation is committed to empowering the next generation of artists. We are inspired and motivated by the level of talent in the independent artistic community,” says Charles Segars, CEO of Ovation, in a statement announcing the initiative, which has been dubbed "Creative Studio." “Creative Studio addresses a very real obstacle that many artists face in obtaining funding for their projects.”

Read more about crowdfunding coming to TV here.

Will crowdfunding put bankers out of business? (MoneyWeek)

Today, crowdfunding is growing in popularity and is poised to do over $30 billion in transactions during 2015. But that number is really just a tiny fraction of all the business captured by the modern banking system. This article looks at crowdfunding not just as a passing fad but as a new way to conduct lending and borrowing.

In fact, crowdfunding can be seen as displacing brokers, too.

Will they want to do that through the stock exchange, with its high costs, and mountain of regulations? Or will they be perfectly happy to trade the shares through the same low-cost, peer-to-peer platforms on which they raised cash in the first place? It seems a lot more likely they will simply use the websites – after all, the costs will be lower, and it is hard to believe companies that have grown used to crowdfunding will ever be willing to tolerate the complexity of a traditional listing.


Continue Reading...