There are many people who are thankful that crowdfunding exists at this day and age because they are able to reach out to a big audience and gather financial support to get started with a business idea. In the process, they also built up a ready and willing list of consumers who are waiting for the business to take off and realize gains from their investments.
Crowdfunding has been one helpful innovation that it has also reached out to help those that just simply needs financial assistance. It can be a family trying to recover from their house burning down or refugees just trying to live a normal life. There are also some issues that are being addressed by social funding like mosques being burned down but communities making a stance and helping restore these places of worship.
But one thing people might be taking for granted is the fact that the infrastructure is in place that helps crowdfunding reach its potential. The technology now paves the way for social funding to function the way it is now. It helps connect those that needs funding with those who are willing to extend either a donation or an investment on a project.
Would social funding flourish
If crowdfunding was introduced around the time the computer became mainstream, things would be a lot different. Imagine these scenarios.
- Slow internet speed. At present, consumers are enjoying great internet speeds which would have been easily deemed as superstition in the past. But if crowdfunding came at about the time speeds were at dial-up speed, connecting to the internet alone would take you minutes. Once you are connected, surfing the web would be at glacial speed. It would be difficult to browse through projects let alone load photos and videos to understand the project even more.
- Low storage capability. The projects to be uploaded to a server would take massive physical storage space that required big machines in the past. What can be equivalent to a small external hard disk now could have been big machines in the past. This would have made storing multiple projects a logistical and technological nightmare.
- Inability to reach a wide audience. The slow internet speed as well as the availability of personal computers would have made it challenging to reach a wide audience and realize the potential of the platform. Only a select number of people would have computers and not all of them would spend precious time browsing through projects and have investment on top of mind.
- Money transactions online. The infrastructure and consumer trust would have been non-existent that would have made investing or donating online a tough hurdle to overcome. Add the fact that credit cards are just starting to be more appreciated when computers came so the financial aspect of the investments would have been another challenge altogether.
Crowdfunding is a platform that was borne out of need and the availability of technology to make it happen. It would have been difficult to succeed in social funding when internet was still reliant on dial-up connection.
This article is written by the Crowdfunders Editorial Team. 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 is South East Asia’s first listed and largest real estate crowdfunding platform. If you have any Crowdfunding news or stories to share, please email [email protected]