According to Wordspy.com the earliest recorded use of the word “crowdfunding” was by Michael Sullivan in fundavlog in August of 2006. An early precursor of the crowdfunding business model could be the concept of collective fundraising a subscription business model that was used in the 17th century to finance publications that were planned but not yet printed.
Crowdfunding began to gain traction in the United States after the launch of Artist Share, it was the first online platform for crowdfunding in 2003. Following Artist Share, more crowdfunding sites started to appear. Crowdfunding websites helped companies and individuals worldwide raise $89 million from members of the public in 2010, $1.47 billion in 2011, and $2.66 billion in 2012. In 2012 more than one million individual campaigns were established globally. The industry is projected to grow to $5.1 billion in 2013.
A report in May of 2014 , released by the United Kingdom based The Crowdfunding Centre and titled “The State of the Crowdfunding Nation” presented data that showed during the month of March 2014, more than $60,000 were raised on an hourly basis via global Crowdfunding initiatives . During this time, 442 crowdfunding campaigns were launched globally on a daily basis.
The Crowdfunding Centre’s May 2014 report identified that there are two primary types of crowdfunding:
1. Reward Crowdfunding: Is where entrepreneurs pre-sell a product of service to launch a business concept without the incurring debt or sacrificing equity shares. This type of crowdfunding is used for a wide range of purposes, including motion picture promotion, free software development, inventions development, scientific research and civic projects.
2. Equity Crowdfunding: this is where the backer receives shares of a company, usually in its early stages in exchange for the money pledged. The company’s success is determined by how successfully it can demonstrate its viability.
Over the last several years crowdfunding has become an increasingly popular option for both entrepreneurs and investors. According to Forbes, Drew Hendricks, the volume of global crowdfunding platforms skyrocketed. Crowdfunding has already proven itself to be a successful alternative in acquiring or investing money. And it’s likely not going anywhere anytime soon. It will most likely continue to rapidly grow. In fact, crowdfunding is poised to become the next big investment trend. And here’s five reasons why:
Have you ever asked for money? It’s not exactly the highlight of your day. But that’s nothing compared to applying for a loan or meeting with potential investors. It’s one of the most nerve-racking experiences that entrepreneurs have to go through. But, that’s not the case with crowdfunding. Compared to all of the paperwork and preparation needed for loans, setting a crowdfunding campaign is a breeze. Just select the right platform, put together a video and offer enticing rewards. While there’s still a need for something that’s important for the long-term, like a business plan, it’s extremely refreshing to only have to make your presentation and pitch just once. Crowdfunding is also a great for both investors and entrepreneurs to discover each other. Instead of relying on traditional methods and investing options, crowdfunding provides a convenient and exciting way of obtaining an investment or finding a new venture to fund.
- Validates a Concept
Having an idea is one thing. Proving that the idea can make a profit is another thing. Whether you need to convince yourself or investors that there’s money made, crowdfunding provides a great opportunity to see where the market stands. If you launch a successful crowdfunding campaign, it not only Continue reading
What your business name says about you and how you can decide on a name that best fits you and the company you are trying to represent.
According to ecommerce-guide.com, you should resist the urge to come up with some hip, trendy nomenclature that says very little about your business. There should be some rational behind why a specific name is chosen. High tech, forward thinking names are common in e-business. They also offer these guide lines for you to keep in mind when contemplating an inspiring company name.
- The name you choose should somehow be an indicator of your services or products.
- It should conjure up a positive image of the company.
- Develop some acronyms that could be effective.
- A serious business won’t be Continue reading
Input2funding has a proven track record of launching successful business start-ups.
Why is Crowdfunding popular?
People feel empowered when they are responsible for creating something new, regardless of whether they are the actual creator or just a contributor. We all have an inherent desire to be part of something larger than ourselves and this is a major appeal that supports crowdfunding’s existence.
Via the internet, millions of people have access to a wide range of investment opportunities, and this visibility is further fueled through social media.
Compared to the legacy funding mechanisms, crowdfunding offers several key benefits:
· Easy setup with few obstacles to launch your campaign
· Entrepreneurs can market their product and fundraise simultaneously
· Shorter lead time to raise funds (consider 1-2 months vs. 6-12 months)
· Contributors become your advocates and help grow your customer base
Ultimately, crowdfunding provides businesses with the flexibility and confidence to stay true to their original venture with the support of their potential customers and contributors.
It has been said that women cannot succeed in executive positions without turning up the testosterone. Reality shows have backed this train of thought. For example, The Apprentice and Shark Tank show women making shrude and even calculated negotiations for businesses to claw their way to the front. It does not have or need to be this way.
Yes, executive suites in Fortune 500 companies are predominantly male. However, businessnewsweekly.com states, “Fifty-five percent of the analyzed companies had at least one female executive, and the proportion of female to male executives at these companies was 2 to 9, or 22 percent. In successful companies the median proportion of female executives was 7.1 percent, more than double the median (3.1 percent) in unsuccessful companies. The study also found that every 10 percent increase in female executives at the VP level yielded a 6 percent increase in the company’s odds of success,” It may be time to rethink the power of femininity in the executive offices.
We may ask, “ What makes a successful female executive?” Continue reading
As a business owner or potential owner do you feel you have your business going in the right direction? What is the right direction? While a business may seemingly be financially on a sound path, the business itself could potentially be failing. Planning today will certainly determine the future. Take your business in the right direction by avoiding these probable pitfalls.
- Sign the check.
The majority of businesses generally have a bookkeeper or accountant on staff responsible for receiving the funds and paying the bills. Looking at a profit and loss statement once a month does not tell the whole story and should never be used as your only insight to the company funds. You should be the one signing the checks so you know exactly where the funds are going and can question payables you are unsure of.
- Blended Funds.
Your personal funds and business funds should be completely separated. If you have to make a personal loan to your company or vice versa it should be done in a professional manner. There should not be any reason why your company funds are paying your personal cable bill.
- Customer Service
Priority, priority, priority! Whether you offer a service or a product you must treat your customer with the Continue reading
Starting or growing a business can be exciting yet challenging. From ideas running rampant through your head to making it a reality is a long highway. There is so much to do, so much to investigate. In essence, we all know the bottom line will be how we pay for it all. Start-up costs can catch us off guard as we forget the tiny details that eat up our budget and therefore have to find other ways to move forward.
Crowdfunding is a great alternative and has changed the way many business start-ups fund their projects. Crowdfunding has tripled in the last few years and entrepreneurs use this type of funding for proof of concept or early idea validation.
According to Forbes, the key to success, no matter where you seek funding, is Continue reading