Items tagged with crowdfunding:
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Professor Ethan Mollick discusses the unpredictable and complex process of crowdfunding and the consulting companies that have sprung up to service it.
“Anyone who tells you they know is wrong. I cannot find any factors that predict virality and I’ve got all the data,” said the creator of the Wharton Crowdfunding Survey.
More and more, Americans are turning to crowdfunding websites to make ends meet after misfortune strikes.Research by Faculty Affiliate Ethan Mollick cautions would be crowdfunders to pay attention to typos, focus on a strong community base, and that “most projects fail by a lot or succeed by a little,” Mollick said. “Don’t aim for viral, you’re not likely to get it.”
As refugees and immigrants displaced by the Trump administration’s travel ban were halted in airports around the country, many used personal crowdfunding sites like GoFundMe to help defray the significant costs she incurred as a result of the ban.Faculty Affiliate Ethan Mollick said the sites had been a promising new venue for fund-raising because they allow for a wider array of innovative approaches to emergencies, in ways that offer donors a more personal sense of investment.
As Kickstarter, the crowdfunding platform, hits the $100 million mark for publishing projects, a study released by the University of Pennsylvania credits the platform with creating more than 300,000 full and part-time jobs. The study, by Faculty Affiliate Ethan Mollick, also reports that Kickstarter has been directly involved in creating nearly 9,000 new companies and nonprofit organizations. Mollick also found that Kickstarter is responsible for generating $5.3 billion in economic impact for its creators and their communities.
“About 38 percent of new businesses in this country are started by women but only between 2 percent and 6 percent of those founders receive VC funding,” says Faculty Affiliate Ethan Mollick.
He also explains why a predominantly male funding landscape can be (and has been) self-perpetuating: “If you share a gender, ethnicity or social background with someone else, you’re part of the same personal and professional network and are therefore more likely to [be inclined to want to work together].”