Reading:
Article: Crowdfunding: History and Future
Write summary notes about this article. Begin with the authors point and include details that support the main idea. Supporting details should include facts and/or examples from the article. Do not include your opinion in your summary notes. Dont recopy sentences from the article.
Crowdfunding: History and Future What Is Crowdfunding? New technologies and innovations often have unexpected consequences. For example, the Internet was initially created to allow scientists to continue to communicate during a nuclear attack. But the Internet led to the development of social media and 5 online payment systems. These two innovations have, in turn, led to the development of crowdfunding: raising money to support a speculative project. Forbes and Schaefer (2017) have identified issues with this and other definitions: Crowdfunding has become a loaded term, meaning so much more than just raising money from the public. In fact, it means different things to different people. New and old terms are sometimes being used to describe the same or similar activities. (p. 398) 10 is support such a wide range of goals. Typically, these include funding traditionat s or help for individuals, such as a child who needs funding for expensive medical products and events, such as production of a play. charity donations for organization Many new technologies seek crowdfunding to get their products into production and notable successes include the Pebble Watch, which has been one of the most successful Kickstarter campaigns ever, raising over $20 million. Success in interventions 20 crowdfunding requires careful planning and execution. Crowdfunding Success 1 Earning Trust to create a convincing campaign that will both be noticed and will generate interest 25 This is often accomplished in part through an online video that summarizes the benefits of the product or service 2 Choice of Platform Crowdfunding platforms have proiferated in recent years, creating the challenge of matching a new product, service, or cause to the right platform. Generaly reviewing platforms to find similar projects makes for the best fit 3 Targets and Deadlines Many crowdfunding entrepreneurs are unrealistic about their goals. As they face setbacks, such as production delays for a new technology, investors 3 may become impatient and withdraw support. The more realistic the project deadlines, the higher chance that investors will contribute to it and future campaigns 4 Building Interest 40 Most crowdfunding campaigns feature small and large rewards. For new technologies and other products, these usually include items like custom T-shirts for a minor show of support, and discounts * commit to higher levels of support. There are also targeted funding goals that will on the cost of the final product for investors who release additional benefits, such as the development of a custom case for a camera that is the core focus of the campaign 5 Fulfillment The term fuffillment refers to delivering the products or services in a timely mannet. Failure to do so can result in loss of trust and withdrawal of investor funding. Moreover, the crowdfunder's future campaigns can be put at risk as an unsuccessful campaign sows seeds of doubt among future investors. These five points can be seen in a satirical campaign that turned out to be amazing successful. In 2014, Zack Brown started a campaign to raise a modest S10 to make ss a bowl of potato salad (Brown. 2014). There was no point in attempting to earn trust, 50 anyone who saw the campaign would have known that it was an attempt at humour. Still, 6911 contributors flocked to the campaign, eventually contributing $55,492 within the one-month duration of the campaign. The choice of platform, the already successful Kickstarter, meant the campaign had 60 high exposure. This was compounded when the novelty of the potato salad campaign led to widespread media coverage. In terms of targets and deadlines, the goals were both extremely manageable and easily met. Investors did not expect any particular returns on their investment other than, perhaps, as a humorous talking point. 65 As for building interest, the potato salad campaigns offered funding targets. Such targets would lead to the inclusion of things like better ingredients. Again, these were of no direct benefit to investors. And, for fulfillment, no promises for delivery were made, although there was a promise to develop a cookbook. This final target was accomplished two years later (Good, 2016). 70 Although there was no requirement for Brown to share the money he attracted, the funds raised by the original potato salad campaign were put to good use, supporting a festival and homeless groups. In contrast, there are many scam crowdfunding campaigns, where products and services are delayed and never delivered, and personal funding campaigns, such as 75 a GoFundMe campaign by Jennifer Flynn Cataldo, who falsely claimed to have cancer and collected more than $38,000 before being exposed and forced to return the donations Crowdfunding will continue to grow, and an awareness of the advantages and disadvantages will need to grow as well. (788 words) Crowdfunding: History and Future What Is Crowdfunding? New technologies and innovations often have unexpected consequences. For example, the Internet was initially created to allow scientists to continue to communicate during a nuclear attack. But the Internet led to the development of social media and 5 online payment systems. These two innovations have, in turn, led to the development of crowdfunding: raising money to support a speculative project. Forbes and Schaefer (2017) have identified issues with this and other definitions: Crowdfunding has become a loaded term, meaning so much more than just raising money from the public. In fact, it means different things to different people. New and old terms are sometimes being used to describe the same or similar activities. (p. 398) 10 is support such a wide range of goals. Typically, these include funding traditionat s or help for individuals, such as a child who needs funding for expensive medical products and events, such as production of a play. charity donations for organization Many new technologies seek crowdfunding to get their products into production and notable successes include the Pebble Watch, which has been one of the most successful Kickstarter campaigns ever, raising over $20 million. Success in interventions 20 crowdfunding requires careful planning and execution. Crowdfunding Success 1 Earning Trust to create a convincing campaign that will both be noticed and will generate interest 25 This is often accomplished in part through an online video that summarizes the benefits of the product or service 2 Choice of Platform Crowdfunding platforms have proiferated in recent years, creating the challenge of matching a new product, service, or cause to the right platform. Generaly reviewing platforms to find similar projects makes for the best fit 3 Targets and Deadlines Many crowdfunding entrepreneurs are unrealistic about their goals. As they face setbacks, such as production delays for a new technology, investors 3 may become impatient and withdraw support. The more realistic the project deadlines, the higher chance that investors will contribute to it and future campaigns 4 Building Interest 40 Most crowdfunding campaigns feature small and large rewards. For new technologies and other products, these usually include items like custom T-shirts for a minor show of support, and discounts * commit to higher levels of support. There are also targeted funding goals that will on the cost of the final product for investors who release additional benefits, such as the development of a custom case for a camera that is the core focus of the campaign 5 Fulfillment The term fuffillment refers to delivering the products or services in a timely mannet. Failure to do so can result in loss of trust and withdrawal of investor funding. Moreover, the crowdfunder's future campaigns can be put at risk as an unsuccessful campaign sows seeds of doubt among future investors. These five points can be seen in a satirical campaign that turned out to be amazing successful. In 2014, Zack Brown started a campaign to raise a modest S10 to make ss a bowl of potato salad (Brown. 2014). There was no point in attempting to earn trust, 50 anyone who saw the campaign would have known that it was an attempt at humour. Still, 6911 contributors flocked to the campaign, eventually contributing $55,492 within the one-month duration of the campaign. The choice of platform, the already successful Kickstarter, meant the campaign had 60 high exposure. This was compounded when the novelty of the potato salad campaign led to widespread media coverage. In terms of targets and deadlines, the goals were both extremely manageable and easily met. Investors did not expect any particular returns on their investment other than, perhaps, as a humorous talking point. 65 As for building interest, the potato salad campaigns offered funding targets. Such targets would lead to the inclusion of things like better ingredients. Again, these were of no direct benefit to investors. And, for fulfillment, no promises for delivery were made, although there was a promise to develop a cookbook. This final target was accomplished two years later (Good, 2016). 70 Although there was no requirement for Brown to share the money he attracted, the funds raised by the original potato salad campaign were put to good use, supporting a festival and homeless groups. In contrast, there are many scam crowdfunding campaigns, where products and services are delayed and never delivered, and personal funding campaigns, such as 75 a GoFundMe campaign by Jennifer Flynn Cataldo, who falsely claimed to have cancer and collected more than $38,000 before being exposed and forced to return the donations Crowdfunding will continue to grow, and an awareness of the advantages and disadvantages will need to grow as well. (788 words)
