Bringing to you some exciting crowdfunding trends 2017 that you should look forward to!
The entrepreneurial spirit and crowdfunding trends 2017 sounds much more familiar and popular. By allowing new business ideas and build successful business stories, Crowdfunding enables an entrepreneur to test their ideas. They can see if there is a market for their business plan or not. Crowdfunding also offers an invaluable learning experience, allowing the entrepreneur to tweak their offering in response to what the market tells them. A lot of companies working exclusively on the crowdfunding domain, analyze current and emerging trends. They identify the ideas that can be successful business stories and then optimize their clients’ fundraising success.
In the year 2014, when Facebook bought Oculus VR, virtual reality firm for £2bn, the crowdfunding world looked on with astonishment. The reason was that Oculus had raised its crucial first $2m on crowdfunding platform KickStarter. In fact, it is one of the first crowdfunded businesses to be valued at over a billion dollars. As per the industry data, Kickstarter as a platform has raised more than $4 billion to help fund a number of projects. Crowdfunding is becoming very popular in a number of global markets. Crowdfunders have a special rising interest in startups, with an experimental and innovative product. Statistics say that the tech- start-ups grabs the most attention when it comes to crowdfunding.
Lets have a look at them:
With the increasing understanding of the benefits of crowdfunding, it will be moving away from mass market platforms. It will be only working on drawing the attention of a specific crowd. Every industry that may be startups, education, gaming, technology, etc. will be forming their own platforms to make the best from its growing popularity.
The era of smart investors
The investor has become cautious and looks for a proper framework before investing. Crowdfunding has made investing go beyond the reach of only Venture Capitalists. The firms are now spending time in educating the new class of investors about its benefits. This is absolutely vital to capture the cautious audience’s attention.
Corporate’ are leveraging crowdfunding as a research and validation method. In addition to market research, they are gaining a lot in the form of pre-orders, even before they go mainstream. Crowdfunding, helps an entrepreneur to understand the market quickly. It is considered as the best platforms for authenticating ideas, determining demand and risks.
A higher tech level
The tech level has to be taken to another echelon to make it an attractive proposition. Investors now look forward to some concrete things, and helping startups move fast. They are looking for startups that deliver a good user experience. A lot of startups fail because of technology! It is advisable that you should not approach for crowdfund, if critical elements are not ready. Before presenting the idea you should understand your costs and research manufacturing processes, suppliers, risks involved, etc. Be confident in your technology and know it inside and out!
Product innovation is the key to causing a behavioral change towards crowdfunding. Innovative products raise a million of dollars. Every category has to show innovation! The crowdfunding platforms are serving as the testing ground. With innovation, great ideas and a bigger ambition, crowdfunding segment is poised to see lots of growth in 2017.
Internationally, crowdfunding majorly operates on a reward-based scheme. In exchange for a contribution, the investor’ are given the finished product. With some prominent and key vendors like Gofundme, Indiegogo, Kickstarter, Teespring, CircleUp, Innovational Funding, CrowdRise, Fundable, Crowdfunder etc., the major market drivers will be the one which have an early access to capital. A major challenge is the low penetration in developing countries. The crowdfunding industry is poised to make more of an impact in the future. We need to understand the value that crowdfunding can add to fueling the startups.
(The article has expert inputs from Crowdholding, that connects inspirational entrepreneurs around the world and helps them in growing a revolutionary business)
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