16 June 2014 Documentation

Crowd-funding
Crowd-funding platforms: GoFundMe, RocketHub, Appsplit, Fundly, Unbound, PubSlush, Indiegogo and Kickstarter

• Crowd-funding is often used to fund creative projects, with backers gaining nothing in return but a warm sense of self-satisfaction and early access to the goods.
• There are no real restrictions on what you can seek funds for.
• If you hit on something that really resonates, then it can be an effective means of getting cash without giving equity.
• It’s like a market research tool to establish demand and gets the big guns interested.
• Crowd-funding is a great way of showing that an idea or project has legs – if the public are putting up money to support something, then this data can be shown to bigger (traditional) financiers, be it a bank or Hollywood production company, and used as leverage to garner more funds.
• When the global masses put their money into a project, this means they’re really on to something.
• “There will be a world where venture capitalists won’t even look at potential deals unless those businesses have validated their product through crowd-funding.” - Danae Ringelmann, Indiegogo Founder.
• "The crowd-funding isn't so much about providing money, it’s about market validation and proof of the audience.” - Adam Leipzig, CEO of Entertainment Media Partners.
• “I believe that crowd-funding is 40% about the money, and 60% about connecting with your audience, building your audience and creating those evangelists and ambassadors for when the project is ready for launch.” - Adam Leipzig, CEO of Entertainment Media Partners.
• Success stories will spur the growth and acceptance of the entire space – Over time, more and more entrepreneurs will use crowd-funding to their advantage, and the fruits of their labor will be seen by friends, family and the community as a whole.
• This will create interest in crowd-funding.
• As more people learn about it, more will decide to participate either as creators or funders.
• Social Media Makes Crowd-funding Work
• In future, equity-based crowd-funding will become popularize.
• The promise of equity draws in the high-roller.

Peer-to-peer (P2P) lending platforms: Funding Circle, Zopa and Lending Club

References
Hatton, D. (2013). What Makes Crowdfunding An Emerging Opportunity For Entrepreneurs - Crowdfund Insider. [online] Crowdfund Insider. Available at: http://www.crowdfundinsider.com/2013/11/27257-heres-makes-crowdfunding-emerging-opportunity-entrepreneurs/ [Accessed 16 Jun. 2014].

Sawers, P. (2014). The Past, Present and Future of Crowdfunding. [online] The Next Web. Available at: http://thenextweb.com/insider/2014/01/09/past-present-future-crowdfunding/ [Accessed 16 Jun. 2014].

The Next Web, (2013). Danae Ringelmann Interview (Indiegogo). [video] Available at: http://youtu.be/I5Ds8gLSPLw [Accessed 16 Jun. 2014].