Crowdfunding is already the next big thing for investors. With nearly 200 crowdfunding platforms in the United States alone and around 1000 globally, there is no shortage in places to test your idea today. According to Forbes on August 27, 2014, volume exceeded over $2.8 billion in 2012.
There are a ton of reasons why crowdfunding is so popular including the fact that it is a proven alternative to the traditional venture capital route, where 95 percent of business proposals are summarily dismissed.
Additional reasons for the rise of crowdfunding as the next big ting include both convenience and validation. It is relatively easy to launch a campaign and the amount of interest and donations let entrepreneurs know if their idea might fly. Crowdfunding can also reduce risk. Investors losses are limited to the amount donated and in the case of platforms like Kickstarter, their money is refunded if the funding goal is not reached by the deadline stated at the outset. You also get feedback during the campaign in the form of comments that allows you to tune and adjust things on the fly.
The most important reason to pursue crowdfunding as a means to test a business idea besides the obvious one to raise funds is marketing and branding. Whether you make your stated dollar goal or not in the time allotted, crowdfunding is an amazing marketing tool.
Through social media and articles both in print and online, you can spread you message to a large audience. Magazines, blogs and press releases are very powerful. Social networks like Facebook, Twitter and others have the potential to reach hundreds of millions of people around the world.
If you have a Kickstarter campaign or are planning to launch one, and are serious about promoting it via social media, you will hire a crowdfunding expert such as myself.
What do you think about crowdfunding as the next big thing? Please drop in your comments below.