Crowdfunding is all the rage nowadays with millions of active campaigns generating revenue for just about everything you can think of. The basic idea behind crowdfunding is that it gives people who otherwise couldn’t get money for a project the ability to raise funds. These projects can include business startups, inventions, charitable causes, and more. In fact, the only limit to raising money through crowdfunding is your imagination. Of course, like all fundraiser ventures, certain projects work better than others for raising money from complete strangers. For example, if you are raising capital for a business venture that doesn’t help the general welfare of the public then you will have a hard time getting supporters.
For the most part, people like to give money to projects that help causes they are interested in. One such project was a new water filter system that will help people from poor countries filter their water. This type of campaign improves the general welfare and more people would be likely to donate to it. Another project that did really well was a special theft proof backpack. This unique designed made it impossible for someone to open your backpack while your walking down the street. The backpack designer included the zippers on the inside of the back therefore a thief would not be able to access them. The designer also include cut resistant straps and fabric that made the pack nearly impossible to enter except from a inside pocket. This project didn’t really help improve the general welfare of the public, but because it was a unique design the campaign was funded successfully and the pack was manufactured.
In some cases, the donation to the crowdfunding campaign can actually go towards the purchase of a product or other free item. This type of incentive definitely helps raise awareness and buzz around a specific campaign. In the last few years we have seen a huge increase in the amount of crowdfunding platforms available to the general public. Originally, Go Fund Me and Kickstarter were the largest players dominating the largest portion of the market share. As time has passed, other platforms have emerged putting their unique spin on the process.
Recently, an entrepreneur by the name of Rob Towles has created a platform called SmashFund. SmashFund is unique because its the worlds first social crowdfunding network that combines the best aspects of social media and crowdfunding into one simple system. Plus, SmashFund has rolled out a revenue share system that gives internet marketers the ability to make money while promoting the system. At the end of the day, its all about getting your project funded. Entrepreneurs all over the world have an abundance of ideas, but lack the funding or the infrastructure to see their projects come to market. In the past, only ideas that were socially acceptable and had a proven track record would be funded because big banks and other lending institutions had a monopoly on capital.
Now, crowdfunding platforms like Go Fund Me, Kickstarter, and SmashFund are bridging the gap and helping business owners get funded with the hassle of using big banks or other lending institutions. What do you think the future of crowdfunding holds? Let me know by replying in the comment section.
SmashFund CEO Rob Towles says he sees projections of a future billion dollar company in the future.