Crowdfunding Disruption: How will it change society?


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Crowdfunding Disruption:  How will it change society?

I love when I hear some pundit say crowdfunding should not be taken seriously, or it is not real investing.  AS IF…  I didn’t know this 10 months ago, but I know it now.  Crowdfunding is revolutionary and it disrupts so many layers of the sales process that I have write about it.  Let’s just state the obvious.  To be in business you must sell a product or service that people want and/or need.  To get that business off the ground you need financing.  Traditional financing has been put on notice.  I mean, why should an entrepreneur subject themselves to that sort of torture when they can crowd fund it?  I’m not saying that it is a panacea, but when done correctly, it can be highly successful.

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Traditional Financing through banks, venture capitalists

In my most humble and accurate opinion, title III has been taking so long because the SEC has been getting pressure from the fat cats on Wall Street.  There is no reason to pay commissions and fees to an organization, when the average platform charges between 1% and 5%.  Be that as it may, the blood is in the water and the sharks are swimming. And in some cases devouring great opportunity.  Look at the recent success of Oculus Rift and Facebook.  Out of nowhere a company raises $2.5 million on Kickstarter then gets bought by Facebook for $2 Billion dollars.  You better believe some investors are trolling Kickstarter and IndieGoGo for the next big deal.

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Research and Development (R&D)

Let’s say you have a product idea for a startup or an existing business, but funds are short after monthly expenses.  When you are a startup, you won’t have a billion dollars of R&D budget like Microsoft.  You have to be agile and guerilla market that deal.  Crowdfunding on a rewards based platform is a great way to kill three birds with one stone.  You are able to build your prototype or working model, and you are able to prove customer validation through a successful crowdfunding campaign.  The successful campaign has actually done your public relations, your sales pitch, your story, and your market penetration – all-in-one.

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Main Street Projects

My favorite campaign to date is Solar Roadways.  This project was vetted and funded twice by the US Federal Highway Administration. It won the GE Ecomagination Challenge “Powering the Grid 2010”, and maintained the most votes in 2011.  Of course this project was highly successful, but would the traditional investors show their love for Solar Roadways?  I think not.  I think banks would be reluctant to invest in solar roadways because of politics.  But we don’t have to worry about that because Solar Roadways is busy getting work done in and around Idaho.

My favorite platform, next to IndieGoGo is Solar Mosaic, for obvious reasons.  When the states and banks won’t finance your solar panel project talk to my friends over at Solar Mosaic.  They have a plan for you. Other projects I like for personal reasons are Qardio and RevoLights.  I need to keep in shape at my age, but carrying a BP cuff is out of the question unless I have Qardio.  Living in the Texas heat, and waking up late doesn’t bode well for bicycle riding unless I do it at night.  That’s where RevoLights come into play. Trust me, it’s only 80 degrees at night versus 100+ degrees during the day.  But my all-time favorite product so far is Ministry of Supply.  Their clothing satisfies my uber tech geek factor to the tenth power.  Let’s face it, the best thing that came out of Will Smith’s last movie “After Earth” was the clothing that adapted to the environment. Am I right? C’mon.

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Direct Response Television (DRTV)

Wait! Stop! There’s more! For this free introductory offer you also get… If that’s not crowdfunding, I don’t know what is.  I don’t know if Crowdfunding will totally disrupt DRTV, but I think DRTV needs to find a collaboration point with these platforms or create their own.  The way people buy in the future will be dictated by mobile and the Internet of Things.  That’s a whole technology blog for another time.  The baby boomers are the last remaining shoppers watching the shopping channels.  It will be interesting to watch this whole process develop.  Shopping as we know it is on the verge of rapid change.

So, in short, I feel a change is in the air.  A sort of positive revolution through exponential times.  In this age of social media it really is ‘Who do you know?’ and ‘How many do you know?’

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About thegreenitguy

The Green IT Guy focuses on energy efficient computing from the desktop to the data center, from hardware to software, and from the network to the cloud.

Posted on August 8, 2014, in Uncategorized. Bookmark the permalink. Leave a comment.

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