Dear Friends! Happy crowdfunding day! The 7th of June marks this important date for crowdfunding evangelists.
The history of crowdfunding.
Despite this way of funding began evolving relatively recently, the underlying principles of crowdfunding date back to centuries. Even though it is quite difficult to determine the first case, KICKICO team researched enough information to feature a few of the most famous crowdfunding events.
The old days. Let us take you far back to the 1700s, Ireland. Believe it or not, but this is where the first principles of crowdfunding appeared. Mr Jonathan Swift, an Irish man, founded the ‘Irish Loan Fund’ which provided microloans to low-income families. Since then, the small lending trend started to expand and resulted in over 300 programs across Ireland by 1800s.
The history of modern-day crowdfunding can be traced back to 1997. Amongst the famous platforms we are used to today, ArtistShare platform was the first one to appear on the market in the 2000s.
Brian Camelio, debatably, called “the father of crowdfunding” is presumably responsible for developing the format that most modern crowdfunding platforms adhere. Brian was a musician from Boston and a computer programmer. The platform started as a website where musicians could seek donations from their fans to produce digital recordings. Maria Schneider with her jazz album “Concert in a Garden’’ was the first project to launch and offer rewards for supporters. For example, for a $9.95 contribution, a backer got to be among the first customers to download the album upon its release in 2004. One fan who contributed over $10,000 was listed as executive producer.
The crowdfunding industry continued to evolve, gaining more and more traction each year. It has grown consistently each year and developed into a $6,923.6m valued market by 2019.
- Campaigns that can gain 30% of their goal within the first week are more likely to succeed.
- Campaign owners raise an average three times more if they update their supporters every five days.
- Campaigns with personal videos raise 105% more than those that don’t have them.
These days crowdfunding is a way for entrepreneurial ventures to secure funds without having to seek out venture capital or other traditional sources of venture investment. The future of the industry is inextricably linked to the evolving technologies, particularly to blockchain and cryptocurrency.
Transparency and global funding are crucial these days.
While KICKICO focuses more on various token offerings and raising capital for technological startups, WHIRL is a socially-driven platform that can be used to finance anything, within reason, from scientific endeavours to personal goals to medical bills to new business ventures.
Some might say that crowdfunding with cryptocurrencies is highly volatile, but let’s take a different look as Tim Draper puts it this way:
It’s not bitcoin that’s volatile. It is all the other currencies disappearing from the view
That is a wrap for today. Happy crowdfunding day to all. Enjoy the weekend!
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