Crowdfunding is one of the fastest growing industries that has recently popped up over the years. If you’re a small company that’s looking to raise money, crowdfunding is a very popular method that you can use to get your start. It’s a fairly new industry, but with sites like Kickstarter, GoFundMe, and IndieGoGo that are constantly growing, many are turning to the masses to rely on their funding. Anyone can make a crowdfunding campaign for nearly anything: a new video game, a musicians debut record, or a brand-new smartwatch. The possibilities are truly endless, however a few industries in particular rely on crowdfunding more than others. So which one’s are they?
4. Technology
When we think of an industry that uses crowdfunding the most, the technology industry is the first that comes to mind. While companies like Microsoft or Google have no issues raising money for new products, the same cannot be said about a small mobile application company or an indie video game. Honestly I would argue that the technology industry was the first to popularize the crowdfunding method, with devices like the Pebble Smartwatch, the OUYA, and the Oculus Rift that have exceeded expectations when it comes to relying on individuals to collectively raise money for funding.
3. Real Estate
The real estate industry is yet another industry that has recently been altered by the crowdfunding space. Acquiring homes, office buildings, and land is very expensive for a single investor, but fairly affordable when it’s split between multiple investors. Websites like Realtyshares and Fundraise allow investors to come together and put money into large real estate deals that they otherwise wouldn’t have been able to afford.
2. Non-profit Orginizations
Non-profit organizations and charities, by their very nature, often struggle to raise money to keep their programs growing. In the past, these groups would have to depend on large investors for funding. Now the crowdfunding industry has changed all of that. Sites like Razoo help users find non-profits and charities that they want to support, and then the collective group can then help fund such charities and organizations.
1. Music
The music industry is one particular industry that has changed the most over the last two decades or so. Before the internet, musicians and artists would depend on the sales of record to make their living. Now with pirating and streaming services, that has all changed as most people don’t buy physical albums anymore. The real issue is that artists do not receive really any royalties from things like Spotify. Additionally it is very expensive to record an album at a professional level. For artists like Taylor Swift or Pharrell, these things don’t matter that much. But what if you’re a small indie band that’s not signed to a record label? Since any artist can now distribute their music through the internet, the most expensive thing for an independent artist is to record their album. Now we see plenty of sites where artists create campaigns that seek crowdfunding to record their albums. You pledge maybe $10 dollars, and then down the road you receive a copy of the album. Crowdfunding is very popular amongst musicians, artists, and bands that would not be able to afford recording an album otherwise.
Photo from Kickstarter.com/YOLK
