What is Crowd Funding? Also known as crowd financing, or crowd sourced capital It is a collective cooperation, and trust by people who pool there money and other resources together, to support efforts initiated by other people or organizations.
In other Words: Crowdfunding is a whole bunch of people giving you a little bit of help financing your project (artists or otherwise) It is a form of charity or donation that uses social media, online communities, and micropayment (paypal).
History: In 1602- VOC (Dutch East India company) was the first to offer shares, through the first stock exchange: the Amsterdam stock Exchange. They offered shares to share the financial risk of dangerous and expensive journeys to the East. 1997-A British Rock group “Marillion” was the first to start crowdfunding in the music industry by gathered $60,000 to finance their US tour from fans.
History: (cont) 2003- ArtistShare, started formalizing “fanfunding” to let fans pre fund an album for artists. 2004- microcredit platform KIVA opened it’s doors and is now one of the most successful crowdfunding platforms, having raise over $165 million through crowdfunding. 2006- SellaBand copied “fundfunding” with a twist, where everyone start raising funds to record an album.
Examples: A government that asks citizens to pay taxes is using crowdfunding model to finance public goods. Kickstarter Rockethub Quirky Fundbreak CatWalkGenius Fan Next Door IndieGoGo Cofundos Profounder
References: Crowdsourcing.org, A History of Crowdfunding. Retrieved April 10th 2011, from http://www.crowdsourcing.org/document/a-history-of-crowdfunding/3169 UluleVox, A brief History of Crowdfunding, Retrieved April 10th 2011, from http://vox.ulule.com/a-brief-history-crowdfunding-1-1097/ Wikipedia The Free Encyclopedia, Crowd Funding, Retrieved April 10th 2011, from http://en.wikipedia.org/wiki/Crowd_funding