By Andrew Deen
About seven years ago, the crowdfunding sector was just getting started as it generated a modest $530 million in its first year of operation.
Now let’s fast-forward to 2015, the crowdfunding industry surpassed over $35 billion in funding for small businesses, entrepreneurs and revolutionary ideas. This is only the beginning as funding numbers are expected to increase with each year, so it is no wonder why innovative start-up companies are now incorporating crowdfunding within their funding and investment strategy.
One of the greatest examples on how a company used crowdfunding to get started can be seen in the virtual reality company Oculus Rift. When the Oculus team launched their campaign on Kickstarter in 2012, they never thought they would fund $2.5 million or even get offered a $2 billion buyout from Facebook. Without the help of crowdfunding, the Oculus Rift innovation may have never even seen the light of day.
By 2025, crowdfunding experts are projecting the industry to raise over $300 billion annually throughout the world.
Take a closer look at the rise of
crowdfunding with this crowdfunding infographic created by the New Jersey Institute of
Technology’s Online MBA program.
Article by Andrew Deen:
Andrew Deen has been a consultant for startups in almost every industry from retail to medical devices and everything in between. He implements lean methodology and currently writing a book about scaling up business.
Infographic by New Jersey Institute of Technology
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