The Crowdfunding Impact

How crowdfunding is taking our society by storm and why its so exciting

Something really amazing happened this week, Lawrence Lessig’s MayDay PAC reached its goal of raising $5 million. I, along with over 50,000 others, donated to this PAC because we wanted to change the way our government is run. The MayDay PAC states its goal as: “We are using the power of citizen-funded big money to fight the big money of crony capitalists and special interests on both the left and the right.”[1]

Arriving at this goal is amazing because, besides even having and reaching this lofty goal, the MayDay PAC really showed us the power of crowdfunding. Crowdfunding has slowly been influencing more and more parts of society. We have seen everything from products getting funding on Kickstarter to Ukrainians crowdfunding their own drones.[2]

The effects of crowdfunding are enormous and only getting larger. When many people hear crowdfunding, they immediately think of Kickstarter and its sister websites, however, crowdfunding is so much more. The MayDay PAC showed us how crowdfunding can enable regular citizens to have a say against big money in politics. Oculus Rift’s Kickstarter campaign showed us how crowdfunding can create a $1+ billion company. Upstart showed us that you do not have to rely on the government or expensive loans to fund your future. Mosaic showed us that communities could add solar energy to its building through crowdfunding. And Ukraine showed us that its people could crowdfund their own military by raising enough money to build a fleet of drones.

Crowdfunding is appealing because typically there is no one in charge. Campaigns are started by individuals but are successful only when a group of people share in their beliefs. It also has the unique quality where you pay only if the goals of the campaign are met, and you know going in what those goals are. This creates a greater sense of trust amongst participants who feel they are in it together.

This influx of crowdfunding is exciting because we are finally entering an era where the top 1% no longer have the only influence. The voice of the people can be heard through crowdfunding. What once was accomplished through votes can now be done through crowdfunding. Talent and ability will have more say than money or status. A group of motivated people can make a big difference.

Crowdfunding will also help us through our current transition where it’s harder to find jobs for recent grads, politicians are easily influenced by money, startup capital is tight, and authoritarian governments need to go.

[1] To learn more about the MayDay PAC, visit the website: https://mayday.us/

[2] To read more about Ukraine’s crowdfunded drones go here: http://arstechnica.com/tech-policy/2014/06/ukrainians-turn-to-crowdfunding-for-border-surveillance-drone/