$65 Billion Will Be Poured Down For Crowdfunding In 2014
Crowdfunding has become a really big thing in business for the last few years. And it is growing enormous! Some guys from one of the leading crowdfunding platforms – Fundable – has created an interesting infographic, on which you can see some astonishing facts and trends regarding crowdfunding. This innovative way for financing start ups has really expanded, for the last 5 years its growth is more than 1000%, and by the end of 2014, the total growth will reach 1800%. And this amazing expansion is not really strange, having in mind that the average return on $1 investment in a start up generates $6.36 for the investor. The returns are huge and everybody wants them.
In simple words, crowdfunding is rising capital from the broad public, by allowing the ordinary person to invest in a business idea even a single dollar. You can read more about this type of funding here. There are two main variants of this type of financing:
donation -based – investors support an idea, just because they like it, without getting a share in the company. This type of crowdfunding is not really much different from a donation to a bright cause. This is the most popular type among ordinary people.
equity-based – here investors get a stake in the company they are supporting. This type of crowdfunding is less popular, because to get a stake people should meet some criteria and have to usually invest more than $1000 dollars.
What The Crowdfunding Market Will In 2014