Crowdfunding is a method of funding that utilizes personal networks for capital raising, applicable for both profitable and non-profitable purposes. It has a rich history dating back to the 1700s and has seen significant growth, with platforms supporting various types of campaigns and a predicted industry value of $2.8 billion in 2012. Key factors for success include social media engagement, campaign visibility, and active participation from individuals in the crowd.

1. By : Hardik Patel
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2.  Also known as the crowd financing, equity crowd
funding, or hyper funding.
 It is a method of funding that allows individuals to
utilize their personal networks to raise capital and
support their cause or business.
 Campaign organizers create an online profile to
explain their fundraise goals and share their project
with friends, family, social networks, etc.
 It can be for profitable or non profitable purposes.
 It has its origins in the concept of crowd sourcing.
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3.  It is used in support of a wide variety of activities
including disaster relief, citizen journalism, support of
artists by fans, political campaigns, start up
company funding, movie, free software development,
inventions development and scientific research.
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4.  Crowd funding 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).
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5.  Crowdfunding has a long and rich history with roots
going back to the 1700's.
 1997- The Inception of Modern Day Crowdfunding
 2009- Crowdfunding Emerges as a Major Funding
Source
 2011- Crowdfunding Gains Washington's Support
 2012- Fundable Launches the First Business
Crowdfunding Platform
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6.  Crowdfunding is a rapidly growing industry
 Average successful crowdfunding campaign is around
$7,000 and lasts around 9 weeks.
 Campaigns that can gain 30% of their goal within the first
week are more likely to succeed.
 Social Media is a critical factor in crowdfunding success: for
every order of magnitude increase in Facebook friends (10,
100, 1000), the probability of success increases drastically
(from 9%-, 20%, to 40%).
 Individuals ages 24-35 and mostly men are much more
likely to participate in crowdfunding campaign.
 Those earning over $100,000 per year are the most likely to
invest in startups through crowdfunding.
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7.  Crowdfunding platforms serve as a “network
orchestrators”. They create the necessary
organizational systems and conditions for resource
integration among other players to take place.
 The emergence of CFPs around the globe is
accelerating. By the end of 2012 there are expected to
be more than 530 platforms, up 60% since last year.
 Crowdsourcing.org breaks these down into four
categories: Donation-Based, Reward-Based
(accounting for the majority), Lending-Based and
Equity-Based.
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9. One Has to choose its suitable platform and understand
which platform is the best to use depending on the type of
project that one want to launch. There are fundamental
differences in the services provided by many platforms.
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10.  Led by the recent success of high profile and high
capital funding campaigns Crowdsourcing.org predicts
that the amount of money raised by CFPs during 2012
will reach $2,806m, up 91% since 2011.
 In 2012, President Barack Obama signed the JOBS Act,
legislation that effectively lifted a previous ban against
public solicitation for private companies raising funds.
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12.  Though funding is often the main goal of a campaign,
it can also a fantastic way to gain visibility and grow
your customer base.
 Some additional ancillary benefits of a great fundraise
are:
 Traction
 Social proof
 Press coverage
 Marketing
 Potential investor interest.
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16.  The inputs of the individuals in the crowd trigger to
crowdfunding process and influence the ultimate
value of the offerings or outcomes of the process.
 Each individual acts as an agent of the offering,
selecting and promoting the projects in which they
believe.
 The will sometimes play a donor role oriented towards
providing help on social projects. In some cases they
will become shareholders and contribute to the
development and growth of the offering.
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17.  Each individual disseminates information about
projects they support in their online communities,
generating further support.
 Motivation for consumer participation stems from the
feeling of being at least partly responsible for the
success of others’ initiatives, striving to be a part of a
communal social initiative, and seeking a payoff from
monetary contributions.
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18.  Social entrepreneurs of all varieties are turning to
crowdfunding to launch or expand their social efforts;
Here below are some examples of Social entrepreneurs
who raised funds for their venture by using
crowdfunding platforms.
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19.  Rebecca Pontius led the effort for an organization
called the Do Good Bus to raise $100,000 on
StartSomeGood to show people how to volunteer by
taking them on a bus to volunteer all around the
country.
 Martha Griffin raised $31,763 on Kickstarter to publish
a children’s book called Sam’s Birthmark.
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20.  Jennifer Windrum raised $35,000 on StartSomeGood
for SMAC—Sock Monkeys Against Cancer.
 Kristopher Young, head of PROViDE, which provides
care for people in Haiti, raised over $2,000 on
StartSomeGood for a dry composting toilet.
 Brad Hurvitz, founder of Trek to Teach, raised $2,910
on StartSomeGood.
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21. http://www.youtube.com/watch?fe
ature=player_embedded&v=qZQla
Zvzf78
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22.  Richards, L. (2012, June 15). Crowdfunding in numbers:
stats. Retrieved from
http://econsultancy.com/ca/blog/10074-
crowdfunding-in-numbers-stats
 Thorpe, D. (2013, January 01). Crowdfunding success
stories include $35,000 for sock monkeys and
$2,000 for a dry composting toilet. Retrieved from
http://www.forbes.com/sites/devinthorpe/2013/01
/30/crowdfunding-success-stories-include-35000-
for-sock-monkeys-and-2000-for-a-dry-
composting-toilet/
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23.  Gofundme. (2012, May 12). http://www.gofundme.com.
Retrieved from
http://www.gofundme.com/crowdfunding-
websites/
 Wikipedia contributors. (n.d.). Wikipedia, the free
encyclopedia. In Wikipedia, The Free
Encyclopedia. Retrieved from
http://en.wikipedia.org/wiki/Crowd_funding
 Khorram, D. (Producer). (2012). Current method of capital
acquisition vs new method of capital acquisition - cf
donation type. Retrieved from
http://www.crowdfundingplanning.com/blog-
crowdfunding_planning-Conference-
cloud_based_business_planning-
crowdfunding_softwarecrowdfunding-
crowdfunding_exchange/traditionalcapitalacquisition
vscrowdfunding
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