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Thursday, June 13, 2013

Crowdfunding: Finance for a Shared Economy

History's greatest achievements were accomplished by people coming together over an idea. Whether considering the construction of pyramids to the discovery of quantum mechanics, they required people to build from each other's bodies and brains. Now, the Internet has given birth to a plethora of opportunities by simplifying the process of coming together with the click of a button. One of those opportunities is crowdfunding.

Crowdfunding, in many ways, is the most liberating thing to ever happen to entrepreneurs. Using online services such as Kickstarter, an entrepreneur can measure the popularity of an idea while at the same time receiving funds from those supporters. If successful enough to launch, that budding business will also be given permitted access to those supporters, which over time can hopefully develop into their brand evangelists.

What crowdfunding means for the public interest is even more exciting. As leaders have always preached (but resources to do so have never been so plentiful) a small pocket of well-organized individuals can make a huge impact. It doesn't matter if your group cares about the environment, the arts, medical research or funding a volunteer trip, the cost and ease to organize is comparatively zilch.

It is important to note, that not all crowdfunding platforms are the same. Some merely act as intermediaries such as Kickstarter or Sellabrand, while others actually get involved selling shares such as CrowdCube and Seedrs. Whichever platform, whichever idea, it is no doubt an exciting time to be an entrepreneur or interested member of the public.