Photo Source: Morguefile Photographer: MPatterson

Crowdfunding has developed into a financial resource for more than just innovative start-ups, where now “crowds are funding crowds”

Photo Source: Morguefile Photographer: dhester

Crowdfunding began with companies

leveraging electronic momentum1

Photo Source: Morguefile Photographer: Jamie Rodriguez

Electronic momentum is

the phenomenon of a

growing digital presence as a result of consumer engagement

Photo Source: Morguefile Photographer: LiaLeslie

After the 2008 credit crisis, banks reduced their loans to small business2

Photo Source: Morguefile Photographer: finance

Venture capitalists and accredited investors

rejected business investment opportunities at a rate of 95%3

Photo Source: Morguefile Photographer: kconnors

Companies turned to crowdfunding as both a

way to market their product, and gain

financial capital

Photo Source: Morguefile Photographer: imelenchon

By 2009, globalcrowdfunding

had grown to $530 million per year3

Photo Source: Morguefile Photographer: Prawny

With huge success for small businesses, crowdfunding was recognized as a possibility for

anyone requiring funds

Photo Source: Morguefile Photographer: TSmythe

By 2010, many scientists recognized the power and

convenience of crowdfunding to supply money for research4

Photo Source: Morguefile Photographer: cyblor

The market adapted, with websites such as MyProjects.com providing a platform for scientists

in the field of cancer research to gain $1.3 million in funding4

Photo Source: Morguefile Photographer: lauramuskinanski

Scientists also

employ public engagement to gain funding, such as providing participation in projects, or updates on results5

Photo Source: Morguefile Photographer: mconnors

Students also realizing the power of this tool, began using social media and

crowdfunding to fund their education with over 160,000 campaigns in 20156

Photo Source: Morguefile Photographer: whiterussian

Students have gone beyond friends and family with campaigns, to promising

investors a percentage of employment income for up to ten years7

Photo Source: Morguefile Photographer: Josh Seemann

In the United States, medical expenses are the

leading cause of individual bankruptcies

with a rate 62%8

Photo Source: Morguefile Photographer: drowinsanity

Individuals turned to crowdfunding to finance their recovery with examples of patients raising up to $50,000 in one day9

Photo Source: Morguefile Photographer: DodgertonSkillhause

Canada is the world’s third biggest crowdfunding market, there are an average of

24 projects launched every day10

Photo Source: Morguefile Photographer: kakisky

Globally, crowdfunding has grown to

annually over $34 billion in funding11

Photo Source: Morguefile Photographer: Jason Gillman

Crowdfunding has major advantages over traditional loans including3:

Convenience

Concept

validation

Low risk

Photo Source: Morguefile Photographer: muvuca

Crowdfunding has grown beyond a tool for new business,

to a global phenomena with a diverse set of producers and

consumers

Photo Source: Morguefile Photographer: MPatterson

Works Cited

[1] Matrix, S. (2016, June 2). Module 4: Social Good. Lecture presented at Moodle Online Lecture.

[2] The Changing Landscape of Alternative Finance | Finance Magnates. (2016, June 02). Retrieved June 04, 2016, from http://www.financemagnates.com/fintech/bloggers/changing-landscape-alternative-finance/

[3] Hendricks, D. (2014, August 27). 5 Reasons Why Crowdfunding Is The Next Big Investing Trend. Retrieved June 04, 2016, from http://www.forbes.com/sites/drewhendricks/2014/08/27/5-reasons-why-crowdfunding-is-the-next-big-investing-trend/#7950f46f3507

[4] Lin, T. (2011, July 11). Scientists Turn to Crowds on the Web to Finance Their Projects. Retrieved June 04, 2016, from http://www.nytimes.com/2011/07/12/science/12crowd.html

[5] Gray, R. (2015, January 02). Crowdfunded science: Harnessing the wisdom of the crowd, or selling out? Retrieved June 04, 2016, from https://www.theguardian.com/science/2015/jan/02/crowdfunded-science-scientists-fund-research

[6] Blackman, A. (2015, November 2). Tuition Due? Time to Hit Up Everyone You Know. Retrieved June 4, 2016, from http://search.proquest.com/docview/1728576913?accountid=6180

[7] Miller, Z. (2016, May 4). How to Use Crowfunding to Finance Your Education. Retrieved June 04, 2016, from http://crowdfunding.about.com/od/Placeholderrr/tp/Fund-Your-Education-Using-These-Crowdfunding-Sites.htm

[8] Burtch, G., & Chan, J. (2015, December 15). AIS Electronic Library (AISeL). Retrieved June 04, 2016, from http://aisel.aisnet.org/icis2014/proceedings/ISHealthcare/35/

[9] Sisler, J. (2012, February 7). Canadian Medical Association Journal. Retrieved June 04, 2016, from http://www.cmaj.ca/content/184/2/E123.short

[10] Lewis, M. (2016, May 2). Majority of Kickstarter campaigns fail despite high-profile successes like Vanhawks | Toronto Star. Retrieved June 04, 2016, from https://www.thestar.com/business/2016/05/02/majority-of-kickstarter-campaigns-fail-despite-high-profile-successes-like-vanhawks.html

[11] Crowdfunding Industry Statistics 2015 2016 - CrowdExpert.com. (n.d.). Retrieved June 04, 2016, from http://crowdexpert.com/crowdfunding-industry-statistics/

All photos retrieved from Morguefile.com with a creative commons license, artists and photographers do not name photos