06 Oct What Will Crowdfunding Trends Be Like in 5 Years?
It’s no secret that crowd funding has changed the way entrepreneurs have raised money for their startup business ideas and projects and even the way they’ve conducted business. It has also impacted nonprofit, charity, and community startup businesses and projects. While crowd funding has proven to be a highly effective fundraising method, there are likely to be some shifts that will impact all startups and fellow crowddfunders. Here are some potential crowd funding trends that are on the not-so-distant horizon.
The Birth of Niche Markets.
Many crowd funding platforms are all encompassing right now. Most sites and platforms that are available aren’t specific to markets, businesses, projects, ideas, and so on. However, as crowd funding really begins to grow in popularity and take off, we are likely to see more platforms that are niche-based. For example, community or charity based crowd funding projects will likely be segregated on one platform whereas for-profit businesses and entity startups will be cornered in another. The likely reason for this is due to the sheer volume and sharp increase in the number of crowd funding projects that are emerging on the market.
More Strategic Thinking and Planning.
As more crowd funding projects and startups launch, and the more crowd funders figure out how they work and how to gain the optimum amount of support, awareness, and funding, it is likely that entrepreneurs and crowd funders will pay closer attention to crowd funding planning and organization, business planning, and more strategic thinking over the long term. Crowd funding strategic thinking could include running data reports on performance results, or the marketing strategies and tactics that generate the most responses and support, such as promotions, product samples, trade shows and other events, and so on.
Putting the “Fun” in “Funding”
With crowd funding as an effective resource and medium to raise funds for a startup idea, project or product, many entrepreneurs and crowd funders are learning the art of “selling”. As we’ve discussed previously, “selling” isn’t really selling when entrepreneurs are passionate and excited about their product or idea. The ability to network and talk to others—whether face-to-face or via social media and crowd funding platforms—and to tell them about “your story” goes a long way in promoting a product, idea or service.
Assign a Gatekeeper.
As crowd funding continues to grow, and as entrepreneurs and crowd funders become more streamlined and efficient with their strategies, many potential investors will likely begin to wonder how an entity is managing and spending their funds. Therefore, it will become more of a priority to assign or appoint a crowd funding “gatekeeper” to ensure all funds received are going to actual facets of an entity or project.
All in all, the crowd fundraising landscape as we know it is likely to shift in the near future. Crowd funders and entrepreneurs should be privy and knowledgeable of these trends and should be prepared to tailor their campaigns and strategies accordingly in order to maximize optimum levels of awareness, audience, and support.