Global crowdfunding experienced accelerated growth in 2014, expanding by 167% to reach $16.2 billion raised, up from $6.1 billion in 2013.
By Peter Moskovitz for Wired.com
EMMA HOFMAN, A kindergarten teacher in New Orleans, needs your money. In the past two years, she has set up six fund-raising campaigns on the website DonorsChoose.org. Her goal isn’t to fund expensive field trips or even a new computer. She just wants her kids to have books, pencil sharpeners, and a few blocks to play with. (more…)
By Trevor Clawson for Forbes
The onward march of digital technology hasn’t been altogether kind to those seeking to eke out a living within the music industry. Admittedly, relatively easy access to the big online streaming and download platforms has made it possible for just about anyone to distribute music nationally and internationally, a development that’s worth at least two cheers. (more…)
Vladislav Solodkiy, Managing partner of Life.SREDA for VentureBeat.com
Over the past year, the fintech industry has transformed from a hypothetical hotspot to an actual one.
By Lucas Matney for Techcrunch.com,
There’s a major leadership shakeup happening at your second-favorite crowdfunding platform, Indiegogo. (more…)
Vladislav Solodkiy, Managing Partner, Life.SREDA VC:
If you take a look at the news about fintech startups, you might get a feeling that all the new financial services are built for retail clients, but not for businesses. However, these are namely the entrepreneurs that may become drivers of fintech, especially in Asia. (more…)
TechCrunch: Realty Mogul, a startup that connects investors with real estate projects, announced today that it has raised $35M in Series B funding. The company launched its online marketplace more than 2 years ago with a focus on equity deals funded by individual, accredited investors. (So it was offering a kind of real estate crowdfunding, but one where most people couldn’t invest.) (more…)
WIRED: The UK is a “world leader” in equity crowdfunding, with further democratisation set to open up everything from hedge funds to IPOs in the next few years. Speaking at WIRED Money 2015 Darren Westlake, co-founder and CEO of leading investment crowdfunding platform Crowdcube, said the future of crowdfunding in the UK and around the world was “more democratisation”. “Crowdfunding platforms are well positioned” to “put the P back into IPO,” he explained, pointing to the success of Crowdcube’s existing equity system as an example of public interest.
TechCrunch: As crowdfunding sites like Tilt and GoFundMe and lending site Funding Circle raise large rounds to take their businesses to the next level, a startup that sits in the same area of web-based fundraising is trying a new approach. CircleUp, a crowdfunding platform for consumer brands to raise money from accredited investors, has closed a $22M fund of its own to back a range of brands on the platform.
DEALSTREETASIA: Equity-based crowdfunding platform Asian Crowdfunder has launched its operations in Malaysia this month, and is in the process of starting operations in Singapore, Indonesia and Thailand. The pan-Asian platform, which claims to be accessible to vetted accredited investors only, is founded by an international team of experienced and successful entrepreneurs and asset managers backed by decades of experience.
TECHCRUNCH: GoFundMe confirmed that it has raised venture capital financing in a blog post today, infusing the previously bootstrapped company with cash that will give it room to grow. (more…)
The Economist: Crowdfunding is just one of a number of ways in which European SMEs, typically far more reliant on bank financing than their American counterparts (see chart), are trying to compensate for the continuing decline in bank lending. Others include issuing publicly tradable debt or equity; placing securities privately with institutional investors; and accepting loans from non-bank financial institutions (“shadow banks”). Banks and others are also securitising loans to SMEs (ie, pooling them, dividing the pool into tranches with different degrees of risk, and selling the resulting securities to investors). Governments are keen to promote all this, to limit the economic harm done by sickly banks. (more…)
DEALSTREETASIA: Singapore-based crowdfunding platforms CoAssets, FundedByMe and New Union have established a tripartite alliance to grow crowdfunding in Southeast Asia. Combined, the three companies have facilitated raising of S$200 million ($148.17 million dollars) through international campaigns, to date. They plan to accelerate this growth in the coming months, despite the relative youth of the industry in the region. (more…)
FAST COMPANY: People in Germany can crowdfund their bright ideas using Kickstarter. If it comes as a surprise that they haven’t been able to do so for a long time, that’s understandable. Germany, after all, is the fourth biggest economy in the world. It has the largest population in the European Union. Entering Germany at its own pace is entirely consistent with Kickstarter’s way of doing things, which tends to be measured and thoughtful. In its six years of existence, the company has only rolled out in 10 countries. Germany is number 11; France, which goes live on May 27, will make it a dozen (more…)
TECHCRUNCH: For those who are looking to invest in real estate, finding good opportunities can be difficult. In commercial real estate, unless you know a property owner or developer, it’s nearly impossible to get your foot in the door. But today onstage at Disrupt NY, a company called Selequity has launched a platform that will make crowdfunding real estate investments much easier. (more…)
TECHINASIA: Brooklyn-based crowdfunding site Kickstarter has proven many times over that collecting funds from the public for creative projects can work. In crowdfunding, backers donate money to make a project or cause they admire come true. Some crowdfunding campaigns are based on a pre-order system, where the backer gets a product once it is completed and deliverable. Others are based on a system where the backer gets a gift or some form of other perk as reward for their contribution. (more…)
TECHCRUNCH: TechCrunch is hearing from a few sources that GoFundMe, a crowdfunding and fundraising startup, is seeking venture financing after bootstrapping the company since 2008. According to those sources, Accel Partners is in the mix, and one says they may be leading the round. Sources said the valuation is around $500 million, though one source said the valuation could that go beyond that. Sources said the deal has not closed yet, so as usual things could certainly change through the end of the funding process. (more…)
TECHCRUNCH: WeFinance, launching today, is the latest startup to use a combination of technology and crowdfunding in order to offer borrowers lower interest rates on loans, while reducing lenders’ risk. The new peer-to-peer lending platform operates something like a Kickstarter for personal loans – largely those in the range of $10,000 to $20,000, and many of which are being used to help borrowers fund their educational expenses, including tuitions, bootcamps, financial support during unpaid internships, and more. (more…)
TECHCRUNCH: China’s largest e-commerce companies are eager to leverage their millions of users and hoards of data for new projects. For example, Alibaba’s other businesses include healthcare management, financial services, and cloud data. Now JD.com, its smaller but still formidable rival, is branching out into crowdfunding for startups. (more…)
Crowdsourcing.org: Global crowdfunding experienced accelerated growth in 2014, expanding by 167 percent to reach $16.2 billion raised, up from $6.1 billion in 2013. In 2015, the industry is set to more than double once again, on its way to raising $34.4 billion. These are the figures from Massolution’s highly anticipated 2015CF – Crowdfunding Industry Report, which was released today. Thanks to our sponsors, the first 50 copies of the report can be purchased at half price with the code FIRST50. (more…)
TECHCRUNCH: During April, the nation will observe Financial Literacy Month – meaning it’s time to revisit the diverging roads to funding early-stage startups. The rise of non-traditional routes for raising capital, such as Kickstarter, has catalyzed a much-needed renaissance in funding options for entrepreneurs. With the passing of the JOBS Act, entrepreneurs have a bevy of new opportunities for raising seed funding, beyond the ever-illusive Silicon Valley checkbook. There are going to be complications associated with making sense of what funding route is best for your company and product needs, but sometimes the answer will reside in a combination of options. (more…)
TECHCRUNCH: Pebble went back to crowdfunding site Kickstarter to help fund the Pebble Time, its second major hardware iteration. The company likely could’ve gone with a more traditional product launch, with a brief pre-order window or direct to market availability, but the campaign did break Kickstarter’s all-time records, netting over $20 million ($20,338,986 to be exact) from 78,741 backers, which is newsworthy over and above the actual product it’s selling. (more…)
VENTUREBEAT: Less than a week after Kickstarter saw the new Pebble smartwatch smash its previous funding record to smithereens, fellow crowdfunding platform Indiegogo has an all-new record to boast about too. With $5.3 million in the coffers so far and 27 days still remaining, the Flow Hive campaign has now passed the previous record-holder — Hour of Code— which had received some big-name donations from the likes of Bill Gates and Mark Zuckerberg to help increase uptake of computer science in schools.
FAST COMPANY: Kickstarter may have kickstarted the crowdfunding movement, but it did so with arbitrary and capricious rules that embraced some projects while refusing to host others, and limited its own growth. But the company underwent a leadership change in late 2013, and last year reengineered itself as an integral part of the startup hardware boom. It saw two companies that started on its platform, Oculus and SmartThings, get acquired by Facebook and Samsung, for $2 billion and $200 million respectively. And it neared in on $1.5 billion in money pledged to projects.