How your credit card became you number one voting power
In the 90s I was gifted my first stocks from my dad. As a young teen I did not know very much about the financial market. I recall the feeling of excitement, and curiosity.
The financial market was then, and is still, a place where you trust your hard earned money with the professionals and simply observe them do their work. As the hobby investor, my only point of interaction with the financial market, and my investment, is in the initial transaction. Once I hand my money over I play a somewhat of a passive role.
Just like the music industry the financial market became sculpted by digitalisation. However this early evolution in the early 2000s did not offset the actually format for investing. As an investor you rarely had more interaction than buying and selling, and for most people this would be enough, perhaps due to the of lack of other ways to interact.
As little as 6–7 years ago crowdfunding was still viewed as a niche, less serious and not a professional field. In 2010 crowdfunding reportedly turned around 880 million dollars globally. In comparison venture capital globally invests a staggering 30 billion dollars yearly. If there were a stock named ‘crowdfunding’, and you invested in 2010. The six following years you would have experienced a +3750% growth. Its an unprecedented growth outcompeting both Apple and Facebook.
During this summer 2016 crowdfunding will have accumulated 30 billion dollars in this year’s first two quarters. By the end of the year predictions range from 80–100 billion dollars in total. It’s a notable milestone for several reasons. Never in the history has investing money been so democratized on a global scale. Micro investments are having a global impact. It’s a new quicker way of “voting” for things we like and are willing to support.
Our support is highly based on the feeling that our investment is closer to us. We engage deeper and wider than with traditional investments. Crowdfunding transcends to a new level of investing, because it has the ability to democratize the world. This due to its low entry level and high accessibility. You pretty much only need internet access and a VISA card to get onboard. If I look back at the time I was gifted my first stocks, I’m stuck by the clear difference that I no longer play a passive investor role. Backers of crowdfunding campaigns, not only open their wallet, they spread the gospel of the campaign, they collaborate and feedback and bring outside passion without being the e.g a founder.
What will happen when we broaden the perspective of this form of investment? What will happen when we transition into other areas such as crowdfunded healthcare, education, poverty solutions, opportunities in climate change or how about personal growth? This means directly supporting organizations and companies which are front runners, building the changes you wish to see. Together we could bypass large systems in a campaign running for 30 days. It’s an opportunity to rise as a collective and create movement with profound change. It is real because it is happening now. And it’s seriously kicking ass with the traditional way of investing.
From my perspective this global movement has fundamental importance. Investments are broken down from institutions to citizens. Crowdfunding has propelled us into an age where people are not just investing, we are ‘voting’ with our wallets co-creating the entire experience. Traditional investing is all of a sudden seems as exhilarating as a fax machine from the mid 90s.
ON A FINAL NOTE, Woody laying it down as it is, and how consumer “voting” with their money means power & change.