How “business” type crowdfunding can develop in a business world, and perform as good as technology, music , games or movies.
In an ebook published by Apen Designs (apen-designs.com ) “5 Massive Impacts of Crowdfunding”, you can discover statistics on “business” type crowdfundings. There is no such type on the Kickstarter plaftform and represents 2.4% on Indiegogo. Globally if we take into condideration all platforms, I estimate that “business” type crowdfunding are less than 1% of total crowdfundings. First category is “technology”.
The average funding volume is 9,899$, which is rather symbolic.
The average failure rate is 48.2%, and success 19.4%. There is no statistics per category, nor information on average backers number.
At the same time, walking through the Streets of Martigny, I found a big headline of a news paper saying that banks not longer support by credit middle sized companies.
My opinion is that banks are concentrated on creating value via trades, and no longer support nor companies, nor states economy. Middle sized entrepreneurs represent a (very) small numbers of votes, and have absolutely no influence on any economic Policy. Politicians influence the public spending, which influence the public spending, and indirectly orders, but it stops here.
So my belief is that the only remaining way is going back to the people, to the crowd, because in return of their “donation” or “participation”, they maybe get revenues, but most importantly, they get jobs. One could think that companies could help start-ups to grow, but due to competition, the eat the smallest, to grow bigger themselves, and innovation coming from the start-ups, bigger organisations being mostly conservative. It seems that if you are a company, the equilibrium state is as sketched below :
THis is a mostly unstable equilibrium, and again, to my opinion, the only to establish a better equilibrium is with an undefinite private crowd, at list the time for a company to grow bigger to defend itself from predation.
I would enjoy your comments on that topic, to establish the key success factors on “business” type crowdfunding.