6 Influential Trends to Shape Crowdfunding’s Future

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Crowdfunding is not only gaining popularity amidst the entrepreneurs or innovators to arrange finance for their various causes, but also is coming as a suitable investment option for the investors. There are multiple reasons that have given impetus to the growth of crowdfunding. The most important amongst them is the medium used for crowdfunding viz. the Internet. With the social impact of Internet, here are the 6 influential trends that would define the futuristic course of crowdfunding hereby –

  1. Dedicated Platforms: On the Internet, crowdfunding is generally not done individually as it restricts the reach out to the plausible investors. It is therefore done over the platforms i.e. the website portals that engage the innovators and the investors to strike a deal if they share their interests. Such platforms earlier catered to a varied interest groups like business proposals, NGOs, students, artists, etc. However, now they are growing to specialize in a particular interest area only like a platform dedicated only for student campaigns.
  2. Internet Traffic driven crowdfunding models: It has been observed that smart phones have taken over the desktops in terms of internet traffic. This has paved way for the platforms to focus on the mobile apps and other mobile- oriented products for crowdfunding. This would also work in the larger interest by reaching the target groups easily. Thanks to the leaps and bounds development in the data mining!
  3. Combo packages: The platforms hosting the crowdfunding campaigns are coming up with interesting instruments to engage the investors in a better way. Equity and mutual funds are a few such instruments to have gained momentum in the crowd funding process. Platforms and authorities are still working to develop even more interesting instruments for the same.
  4. Choice of finance sources: Well, in case of crowdfunding by innovators, it was a Boolean equation- either gets complete funding through crowd funds or none. However, now, the innovators are going for multiple means of finances. This makes the work easy and helps them hedge against the uncertainties in getting funds. However, the costs of funds may vary in this case.
  5. Innovators getting careful with campaigns: The innovators are now checking for new ways to make their campaigns more appealing. As the attention of innovators towards crowdfunding is increasing, it is getting difficult to reach the investors with unique ideas. Besides, the campaigns should be really persuasive to ensure that the investors come forward to fund the same. Also, the rewards attached with the investments are being customized to ensure that the interest level of the investors is sustained.
  6. Competition on a rise: As crowdfunding has pitched in through internet, the other traditional financing means for small to medium sized enterprises are experiencing the shift in the customer interest. Even they are planning to go for online means to supply funds and opportunities to the innovators as well as the investors. So the competition is increasing for crowdfunding platforms and the traditional media of financing.

Crowdfunding is seeing a brighter future ahead, giving a cut throat competition to the conventional means of raising funds!

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Crowdfunders Editorial Team from Crowdfunders.Asia has written this article. In Asia, Crowdfunders.Asia is a leading portal on providing news related to crowdfunding, start-up, property and business. It is operated by CoAssets.com. CoAssets.com is based in South East Asia and is the first real estate crowdfunding site. You may reach us at [email protected]  if you wish to contribute your story.

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