Introduction to Crowdfunding
Almost five years ago, crowdfunding online was a concept in its early adoption stage wherein it reported to about a size of $880 Million in 2010. Soon it picked up its pace and grew to a value of almost $16 Billion in 2014 with an expected figure of over $34 Billion by the end of 2015. Crowdfunding as a phenomena has been growing drastically giving an opportunity to new companies and startups to not just raise capital but showcase their product prototypes and convey the right message across to their target audience.
Taking the growth spree into mind, Crowdfunding 2016 aims to be standing at an industry of about more than $65 Billion which aims at capturing a plethora of market share when compared to VC.
Crowdfunding 2016 goes head-to-head against VC 2016
As per the market statistics, it has been noted that while Venture Capital grows at an average rate of almost $10 Billion to $15 Billion over a year, crowdfunding has been at a rampant growth rate of almost double year-on-year. Although, equity crowdfunding can be related to Venture Capital and it won’t be wrong to say that VC is a part or type of crowdfunding but Crowdfunding as a concept offers much more options for individuals or companies to raise capital using donations, rewards and other schemes. It is also a matter of fact that when we look at Crowdfunding 2016, scalability is very important as the Crowdfunding platforms are open to scalability depending on their structure and model whereas on the other hand Venture Capitalists cannot scale which puts them behind the concept of crowdfunding.
Platforms play a key role in Crowdfunding 2016
Over a period of time, various platforms like Kickstarter, MyEfunder, Indiegogo, Crowdfunder etc. have emerged as the strong backbone of the crowdfunding industry. It is believed that these portal will ensure more and more ideas to become a part of Crowdfunding 2016. These platforms enable the interested parties to:
- Reach directly to their target audience
- Showcase ideas and products at mass scale
- Help generate funds from target audience
- Get mentorship support from industry leaders
Crowdfunding 2016 impacted by New Regulations
As with every other upcoming concept happens, new regulations are being formulated around Crowdfunding 2016 in order to ensure investor security as well as transparency by regulation authorities around the world. This empowers the equity investors and will also open newer avenues for the startups in order to raise money from anyone in Crowdfunding 2016.
Conclusion
Eventually, as we see an industry which was originally VC dominant is being completely taken over by Crowdfunding and it will make easier and accessible capital raising for startups from all kinds of industrial backgrounds, more lucrative in Crowdfunding 2016. Also, investors from all over the world would want to be a part of the Crowdfunding 2016 with the levels of growth and opportunity in picture.
Share your opinion on how Crowdfunding 2016 would shape up as the year proceeds.
