Crowdfunding: Pitching a project it is not just a matter of storytelling.
Money and people. According to business scholars, these are among the main hurdles social entrepreneurs have to overcome to succeed with their projects. The web promises to provide us with a solution.
At a compound annual growth rate (CAGR) of 4.4% from 2021 to 2028.
"Empirical research shows that start-ups that are more innovative tend to attract greater interest from crowd investors (Le Pendeven and Schwienbacher, 2018). This finding contrasts with reward-based crowdfunding, where Chan and Parhankangas (2017) document that the crowd has a preference to support less innovative projects, perhaps because they face a greater risk if they are not able to deliver the promised reward." (Schwienbacher, 2019)
Trying to add more backers helps, but when such backers have prior affiliations, it hurts.
For many, Kickstarter is synonym for crowdfunding and such a move shows the way for the future.
A set of new rules was released earlier this week by the European Union as the European Market and Securities Authorities provided a set of new technical standards.
The leading platform announce a new programme to protect the community and partner with GoFundMe.
We are not only what we do but the intention underpinning it.
Contrary to popular belief, research is a collective effort. My notes about the 5th European Centre for Alternative Finance Research Conference.
The European crowdfunding trade body changes visual identity to signal a new phase of the industry.
“The future is in our hands as investors look with increasing interest at companies with a positive impact.”
There is despair, but also a desire to react and come together to look ahead.
WeFunder is planning to launch a platform in Europe taking advantage of the new European Union funding rules.
ECN Crowdfunding Convention
Member states are responsible for authorising and supervising crowdfunding providers.
But collaboration, education and research are pivotal to succeed.
To raise funds via crowdfunding or by other means, entrepreneurs have to tell stories. And this is much more effective than just show numbers, studies say.
Kickstarter research found that support for crowdfunding campaigns and the success rate of campaigns is consistent with pre-pandemic metrics. However, the number of live projects on Kickstarter is down about 25% from the same time last year. Meanwhile, the largest equity crowdfunding platform, Wefunder, just reported that investor volume was up 35% from February through April and, in early May, reported a record $2 million of investment on a single day.