Globally, crowdfunding sites have taken off with huge growth, with Australia just starting to catch on in recent times.
$8 Billion was raised by crowdfunding in 2014 alone! By 2016 the crowdfunding industry is on track to account for more funding than venture capital, according to recent reports by Massolution.
Just five years ago there was a relatively small market of early adopters crowdfunding online to the tune of a reported $880 million in 2010. Fast forward to today and we saw $16 billion raised through crowdfunding sites in 2014. 2015 has been estimated to have grown to over $34 billion. The crowdfunding industry is doubling or more, every year, and is distributed across several types of funding models including rewards, donation, equity, and debt/lending.
ReadyFundGo support rewards based crowdfunding. We connect people to projects and businesses worth funding. Whether you want to start a new business, expand your current business into other areas, products or services, purchase equipment or just need some extra cash to retrain staff, we can help you raise capital through crowd funding. Our team of campaign pilots and experts can also help you raise money for non-business causes, such as charity, community and personal projects.
Equity crowdfunding allows a large number of investors to make small equity investments in a company. Equity crowdfunding has taken off globally, growing to more than $5.1 billion last year. While Australia has been slow to join and current regulations impede crowdfunding, the government is currently revisiting regulation to allow for crowdfunding. Allowing debt and equity to be raised from the “crowd” can provide small businesses with an alternative source of capital that could create jobs and increase productivity. One of the first obstacles that start-ups face is access to capital. Crowdfunding allows start-ups to get a first-start business off the ground with the resources that it needs. Stay tuned to see when equity crowdfunding takes off…
At the moment, crowdfunding in Australia is primarily reward based crowdfunding. This type of crowdfunding offers a great amount of potential for new businesses, community projects, personal fundraisers and more. The general idea is that supporters of the campaign are ‘rewarded’ for their pledges by an array of offerings. This could include early release of a new product, exclusive access to a limited number of products or experiences, a customised experience or gift, events and more. The crowd provides the initial funds for the campaign creator to start their project. Rewards are fulfilled typically after the campaign has ended.
Another great potential use behind this type of crowd funding is through ‘testing the market’ or using the platform as a ‘minimal viable product’ for testing market response. Campaigners can engage with potential backers through updates and commenting, taking feedback and polls for their new product. It also is an additional channel for gaining exposure outside of traditional methods in Australia.
If you’d like to start creating your own campaign, can you start today. It’s free. Our team will be in touch to see how we might help in building your campaign.
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