Crowdfunding as we define it today is collecting funds from the masses with the help of an online platform. Though, a lot of people know about crowdfunding. But most of them don’t know the Crowdfunding History. Here are a few fascinating facts from the Crowdfunding History. We bet you didn’t know these!
#Crowdfunding is more than 300 years old!
Yes. You read it just right. The crowdfunding history dates back to the 1700s. It was founded by author Jonathan Swift in Ireland. Crowdfunding functioned as Irish Loan Fund. It provided loans to the small families in rural areas. Consequently, by the 1800s, it became a popular program used by 20% of the Irish households. Since, more than 300 programs contributed small amounts to this.
#Modern-day micro financing started in 1976!
Micro financing began in 1976, by Dr. Mohommad Yunus. He launched a micro finance program in Bangladesh. It aimed at providing banking opportunity to low income families. Though, initially it started as a $27 loan to 42 women. But it had 30,000 members by the end of 5 years!
#The first successful crowdfunding was done in 1997!
Though it started quite early, crowdfunding could not find massive success immediately. But, the year 1997 was a game changer in the crowdfunding history. In 1997, a rock band from Britain planned a reunion tour. They funded the tour with the help of online donations made by their fans.
#ArtistShare was the first dedicated crowdfunding platform.
After the 1997 crowdfunding success, ArtistShare became the first dedicated crowdfunding platform in 2000. Crowdfunding History saw many other platforms emerge thereafter.
#The term “Crowdfunding” was coined in 2006
Though the process began early, the term “crowdfunding” is relatively new. It was coined by Micheal Sullivan in August 2006. He used it for the first time in FundaVlog, which was founded by him.
#Crowdfunding became really popular by 2009!
Slowly and gradually, crowdfunding was gaining popularity since its inception. Competing with its counterparts, crowdfunding slowly grew. But crowdfunding history clearly says that 2009, changed it all. Crowdfunding became immensely popular. And it became a major fund raising source. And since then it is just growing. Its revenue tripled in 2011 to $1.5 billion from $530 million in 2009.
#2010 became the year for Donation based crowdfunding!
The crowdfunding history recorded a new event in 2010. Crowdfunding websites for donation-based crowdfunding emerged. They enabled small organizations or individuals to collect donation from the crowd.
#2012 – It changed the Crowdfunding History!
In 2012, the JOBS act was signed into a law by Barack Obama. Jumpstart our Business Startups act (abv. as JOBS act) eased security regulations with a motive of encouraging fund raising for small businesses. In October 2015, equity crowdfunding was allowed with the adoption of new rules by SEC.
The crowdfunding history is really fascinating. And so is the concept itself of crowdfunding. The simplification and ease of work with crowdfunding has made it very popular. Hopefully, its future too, will be bright!
