Crowdfunding has become the new rage with a World Bank report stating that this entire gamut could be worth US$96 billion by 2038, which is a full 1.5 times greater than the present size of the venture capital industry. It is also now understood that crowdfunding has been and will further democratize investments, leading to funds being available with lean start-ups to compete with traditional giants. This is further evidenced by the blossoming of crowdfunding platforms such as Kickstarter, Indie Go-Go and Go Fund Me. However, the reality is less rosy as further introspection suggests that crowdfunding tends to go better with safer projects rather than true businessinnovations. This is because the majority of investors on such platforms do not have the overall vision that large VC firms have and so opt for utility products. An interesting business intelligence provided by Kickstarter is that when the terms novelty and utility were mentioned individually, their rate of getting funded increased by 200 and 1200 percent respectively. However, when the terms were both mentioned simultaneously for a single product, the acceptance went down by 26 percent implying that people did not see these two values as co-habitable.

Source:https://www.strategy-business.com/blog/Does-Online-Crowdfunding-Reward-Actual-Innovation?gko=7f14c

Uploaded Date:16 November 2017