Crowdfunding And Its Future Potential

Enhanced internet connectivity, driven by innovations in technology has brought many development opportunities for businesses, nonprofits, individuals, and social entrepreneurs to carry out fundraising activities, while at the same time, ensuring that their venture is one that is beneficial to society as a whole. From there stemmed the concept of online fundraising, which has given rise to innumerable platforms for crowdfunding in India.

As opposed to traditional fundraising, crowdfunding is for all

No longer is crowdfunding seen as a source used solely by NGOs and nonprofits, who want to raise money to support a cause. It is much more diverse than that. Crowdfunding can be seen as the new age of investment and sponsorship that allows the masses to participate and invest in public benefit, through social enterprises, events, products, innovation, philanthropy, and much more. Businesses have the opportunity to raise risk-free capital, and low-income families no longer have to rely on expensive insurance schemes, and rejected loan application/ loss of personal assets when they need funds for medical treatment or education.

It complies with the future of a digital economy

Speaking of our home ground, the demonetization move in 2016 encouraged more people, even in rural areas, to adopt mobile banking and digital fund transfers for making payments and receiving funds - be it through paytm, or NEFT. Consequently, this changes the way people do charity. To raise money online has the benefit of reaching out to many more people at a time, as opposed to older ways of pitching all communications towards a potential donor. The dynamic has shifted from receiving large sums from few people to small sums from a large number of people, all thanks to pioneering technologies.

A socio-economic revolution will encourage the development

One of the biggest changes is that of the perception of the masses. The reason is that even people with smaller earnings are able to contribute and invest in ventures they believe will benefit them. It has given people greater power to partake and support co-creation through private initiatives. Cultivating an environment that is inclusive of everybody has tremendous scope for community building and positive socio-economic impact.

If this is not proof enough of the bright future of crowdfunding, The World Bank too has predicted that global investment in crowdfunding will hit $93 billion by 2025.