Observations
  • Home
  • Observations
  • Trendcasting
  • Odds 'n Ends
  • Science/Technology/Experiments
  • Mental Health

Crowdfunding: Some Thoughts...

6/12/2014

0 Comments

 
Picture
Crowdfunding is the collection of money from backers, the "crowd" to fund an initiative and usually occurs on an Internet platform. The initiative could be a non-profit, to raise funds for a school or social service organization, political, to support a candidate or political party, charitable, to raise emergency funds for an ill person, or to fund a critical operation, commercial, to create and sell a new product or financing a campaign for a new start up company.
Crowdfunding models involve a variety of participants. They include the people or organizations that propose the ideas or projects to be funded, and the crowd of people who support the proposals. Crowdfunding is then supported by an organization (the funding site) which brings together the project initiator and the crowd.
Business and social issues have been “crowdfunded” for at least 400 years. The first books to be printed were backed by those people interested in introducing mass-produced education and entertainment. A more recent example is in 1884 when the Statue of Liberty fund ran out of money to pay for the pedestal for the statue on Bedloe’s Island, now Liberty Island. Joseph Pulitzer ran articles in his newspapers to ask for donations and they received $125,000 in 6 months.
But to say that the growth of these sites is exponential would be an understatement. There is no way of knowing how many exist and how many are going to spring up. There are two aspects to consider when participation is contemplated.  All of the sites have a cost, usually between 5% and 10%. The fee will be paid either by the originator of the project, or the contributor.  And in all cases, the potential to get “burned” is always present. Even the cause related sites have siphoned off funds for personal gain. And in one site that I have followed, Kickstarter, projects have failed to be finished, cost much more than expected, or have been totally fabricated. I am not picking on KS, but there is considerable risk when becoming part of a crowdfunded project. If you are thinking about joining in with the crowd, please do a lot of research! And, many of the sites are not secure so that is something else to consider before investing in the latest concept. The trend? There are always more people trying to separate us from our money. Caveat Emptor…

0 Comments



Leave a Reply.

    Picture

    Archives

    April 2018
    January 2018
    October 2017
    June 2017
    April 2017
    January 2017
    December 2016
    November 2016
    October 2016
    August 2016
    May 2016
    April 2016
    December 2015
    November 2015
    September 2015
    July 2015
    June 2015
    May 2015
    March 2015
    February 2015
    November 2014
    October 2014
    September 2014
    July 2014
    June 2014
    May 2014
    April 2014
    March 2014
    February 2014
    January 2014
    December 2013
    November 2013
    October 2013
    September 2013
    August 2013
    July 2013
    June 2013
    May 2013
    April 2013
    March 2013
    February 2013
    January 2013
    December 2012
    November 2012
    October 2012
    September 2012
    August 2012
    July 2012
    May 2012
    April 2012
    March 2012
    February 2012
    January 2012
    December 2011
    November 2011
    October 2011
    September 2011
    August 2011
    July 2011
    June 2011
    May 2011

    Categories

    All
    Advertising 1895
    Applications
    Bulb Act
    Cgi
    China Concerns Again
    Cloud Computing
    Drones
    End
    Family Mediation
    Gas Prices
    Gesture Technology
    Google Antitrust
    Grocery Deception
    Heathkit
    Infolust
    Infrastructure Failure
    Mechanical Computer
    Medical Devices
    Medication Mistakes
    Mental Health
    Original Ideas
    Pc
    Politics Of Fear
    Post Office
    Recycled News
    Rushing To Judgement
    Salmonella
    Siri
    Social Media Business
    Sopa
    Stock Market
    Texting
    Trendcasting
    Urine
    Wireless
    World

    RSS Feed

✕