By Aimee McAdams
A bit of trivia for you: it is said that crowdfunding got its start with the classic American beer, Pabst Blue Ribbon. When the company went up for sale in 2009, two ad execs started the website buyabeercompany.com to crowdsource the funds to purchase the beer giant. They had collected pledges of over $200 million by the time the S.E.C. shut them down, citing violations of their investment regulations.
But the seed had been planted and in 2011, H.R. 2930 was passed, allowing start-ups to seek capital from individuals. Since then, the popularity of crowdfunding has skyrocketed, reaching new heights in 2013 when the S.E.C. approved new regulations that loosened restrictions and made crowdfunding accessible to the greater public.
2013 was a landmark year for this alternative finance model, with new crowdfunding companies popping up and established sites like Kickstarter and Indiegogo experiencing stellar gains and funding successes.
Here, we share five of our favorite crowdfunding stories from 2013:
The Economic Value of Crowdfunding
If you’ve had doubts about the crowdfunding movement, check out this nifty little infographic, created by Fundable and showcased by entrepreneur.com. Some impressive stats offered up in an easy-to-read graphic that will have even the biggest skeptic taking another look at this fast-growing trend. According to estimates, crowdfunding will “inject more than $65 billion into the global economy” in 2014. After a rather obscure start, it looks like crowdfunding is here to stay!
Crowdfunding and Politics
Crowdfunding offers endless possibilities. The increasing popularity of this funding platform isn’t just for social causes, start-ups, and entrepreneurs. Check out how political groups stand to benefit from using crowdfunding to earn much-needed campaign funds and get voters to the polls.
As small businesses continue to seek alternative financing, global crowdfunding site Indiegogo helps them navigate this sometimes confusing process. In December of 2013, they launched their “Playbook,” an online guide that compiles resources on all things crowdfunding. Learn more about this information-packed guide here.
One Million Successful Campaigns
Read up on the success of crowdfunding in 2013 in this data-packed article from venturebeat.com. While social causes topped the list of funded entities last year, it is apparent that crowdfunding has had numerous other beneficiaries, and will likely fund many more in the coming year. Massolution’s research of over 300 crowdfunding companies shows that this “alternative” funding option is becoming more mainstream every day.
In case you’re wondering where the crowdfunding movement is headed, see how equity crowdfunding will make a splash in 2014. Forbes contributor Addison Wiggins predicts that the coming year will be “the year you can become your own venture capitalist on a shoestring budget.”
From its less-than-legal, beer-buying start, crowdfunding has exploded into the spotlight almost overnight. No longer an obscure buzzword, this increasingly popular funding alternative is making waves across the globe. The S.E.C is expected to finalize and release their new regulations in the next few weeks, and it will be fascinating to see how crowdfunding will continue to fuel our economy and help businesses grow. I think we can all cheers to that.
P2Binvestor is a crowdfunding platform for working capital financing and a leader in crowdfunding receivables. P2Binvestor utilizes the power of technology and its crowd of accredited investors to simplify lending and provide working capital to growing businesses faster and at more affordable rates. The company offers three flexible products: A receivables-purchase product, an asset-backed line of credit, and a credit line secured by future revenue (designed for SaaS companies). P2Binvestor lends to companies in all 50 U.S. states in various industries including staffing, natural foods, manufacturing, technology, and more. P2Binvestor has been providing businesses’ receivables financing since December 2012. For more information, like us on Facebook and follow us on Twitter @P2Binvestor.