Major Trends in Crowdfunding

Crowdfunding was previously only an approach for start-ups to get up on their feet, but the method is now showing potential for established companies to shift their strategy and encourage positive and profitable change. Here are some major trends that are changing the landscape of this space.

Crowdfunding to Dominate
There’s not set alchemy for which industries will magnetise equity crowdfunding. Real estate, however, seems to be emerging as a poster child for the industry.

Sites like RealtyMogul, which allow visitors to crowdfund property from $5,000, have raised more than $290 million. It has reached more than 135,000 investors in the process. By opening up this previously closed asset class to vast new audiences, equity crowdfunding is empowering non-accredited investors.

Crowdfunding for all
The democratisation of finance that equity crowdfunding allows is a key selling point. Allowing access for all, also means allowing access to existing corporate entities, some of whom have been especially savvy in tapping into the equity crowdfunding scene.

Increasingly, established corporations are turning to crowdfunding to test prototypes and acquire funding. The dominance of this trend was noticed and acted upon by Indiegogo last year, as they announced their intent to cater to major firms. Virgin, on their entrepreneur blog, noted how Sony subsidiary Fashion Entertainment raised over $20,000 for its FES watch via Japanese crowdfund site Makuake, stating how “crowdfunding, it would seem, isn’t just for the little guys anymore.”

Highly Visual Campaigns

Like most citizens of the internet, crowdfunding campaign supporters aren’t so much readers as they are skimmers.That being the case, it’s no surprise that the most successful crowdfunding campaigns are the ones that are visually engaging without overwhelming their campaign page visitors.

In order to build a page that’s optimized for internet (not to mention mobile) users, you’ll have to be as visual as possible.

Crowdfunding Campaigns Paired with Events

Crowdfunding might be rooted in the digital world, but that doesn’t mean it can’t capitalize on in-person fundraising methods as well.

Events are a natural addition to crowdfunding campaigns, so it makes sense why so many fundraisers are making use of this trend.

Not only do events add a real-world component to your online fundraiser, but they also allow you to boost your fundraising potential even more than with a crowdfunding campaign alone.

Plus, fundraising events give you a chance to interact face-to-face with supporters you may have otherwise only interacted with through a screen.

If you’re an individual fundraiser, this face time gives you a chance to thank your donors in person. If you’re a nonprofit, this personal interaction can be the foundation for a long future of giving and other types of engagement.

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