Empowering Dreams: The Journey of Crowdfunding.
Crowdfunding is a term that you often hear about encompassing everything from projects within the arts sector to humanitarian causes and financial investments.
However, have you ever wondered about the origins and beginnings of crowdfunding? Let’s delve into the history of this powerful innovation.
The origin of Crowdfunding.
Crowdfunding, an age-old practice with its roots tracing back to the 1700s, has evolved into a prominent funding model in the digital age. In 1997, a pivotal moment occurred in the United Kingdom when fans of the renowned British rock band Marillion utilised the internet to raise an impressive $60,000. Their goal? Funding a US tour for the band. This groundbreaking endeavour can be considered a significant milestone in the birth of modern crowdfunding.
Recognising the potential of this innovative financing approach, the first dedicated crowdfunding platform, ArtistShare, emerged in 2000. This pioneering platform served as a catalyst for the subsequent establishment of numerous other crowdfunding platforms, paving the way for the birth of the vibrant online crowdfunding market we know today.
Origins of Real Estate Crowdfunding.
Real Estate is one of the first major industries which Crowdfunding has transformed for both developer and investor.
In 2012, President Obama introduced the Jumpstart Our Business Startups (JOBS) act, a significant milestone that revolutionized investment opportunities. This law opened doors for private individuals to invest in start-up companies and enabled crowdfunding platforms to issue securities like stocks and bonds, a practice previously prohibited. It also marked the beginning of real estate crowdfunding, allowing non-accredited investors to participate. Real estate crowdfunding is growing rapidly. It’s a way for people to own equity who may not have the funds, or even the desire, to take on a big mortgage alone.
Since the JOBS act, numerous crowdfunding platforms have emerged worldwide, including Kickstarter and GoFundMe in the US, Seers in the UK and Pozible in Australia.
With advancements in online security and the power of social media, the online crowdfunding market industry market value is an impressive $12.27 billion USD.
Understanding Crowdfund 2.0 and 3.0
Crowdfund 2.0 can be seen as an evolution of traditional crowdfunding, focusing on improving the accessibility and functionality of crowdfunding platforms. Crowdfund 2.0 implemented more user friendly interfaces and expanded social sharing capabilities, harnessing the power of social media.
Crowdfund 3.0 builds upon the 2.0 version leveraging blockchain technology to enhance the fundraising experience. While traditional crowdfunding platforms typically operate on centralised systems, Crowdfund 3.0 utilises the decentralised nature of blockchain to eliminate intermediaries, enhance security, and create a more inclusive and transparent ecosystem for fundraising.
One significant difference is the utilisation of smart contracts. When participants contribute funds in the form of cryptocurrecny to the crowdfund, the smart contract securely holds and manages the funds. It ensures that the investment conditions are met, such as a minimum funding threshold or specific criteria for release of funds to the project. If the conditions are met, the smart contract automatically transfers the funds to the project and distributes investment shares or rewards to the participants.
Investments historically reserved for the elite and now accessible for ordinary people with a much lower entry level, fractionalised ownership begins with as little as $100.
It’s sounds complex but it’s really quite easy, just like using a Smart phone....
You don’t even have to understand all the aspects of blockchain technology, you just need to understand how to use it.
Think about electricity. Many people probably don’t understand exactly how electricity actually works but they use it whenever they turn on a light switch or many other gadgets.
Crowdfunding through Blockchain operates in a similar manner; you only need to grasp its usage without delving into all the intricate details.
Crowdfunding platforms do all of the heavy lifting for you.
You will of course need to have some foundational skills in place such as using a digital asset wallet. You want to be able to get paid your profits after all right?!
Empowering People with Crowdfunding.
With the emergence of crowdfunding 3.0 platforms revolutionising the fundraising arena, it allows people to collectively contribute resources and back investment opportunities or causes that resonate with them, potentially generating profits in return.
Picture this: you now have the ability to participate in a Crowdfund and receive a steady monthly income. Presented below are several options that leverage tangible products and services in the real world, offering the potential to realise profits from your contributions in a global market.
- Tokenised Real Estate: Collective purchase of real estate with ownership shares distributed among participants.
- Technology Development: Creation of AI trading algorithm for profitable trading.
- Water Filtration Factories: Establishment of facilities to provide clean drinking water in developing nations.
- Energy Trading Platform: Implementation of a blockchain-powered platform enabling direct peer-to-peer energy trading.
- Decentralised Marketplace: Utilisation of blockchain technology for a marketplace allowing direct buying and selling without intermediaries.
- 3D Printer Technology: Utilising 3D printing to construct housing and infrastructure in underdeveloped regions.
As we transition into a new landscape of Crowdfund and DAO’s we introduce new possibilities that were not available just a few years ago.
With these advancements, we can redesign how we invest, build businesses, collaborate, make an impact and effect change.
The result is a greater level of autonomy, independence, financial security, life choices and ultimately peace of mind.
This my friend is true freedom.