Items tagged with crowdfunding:
News & Updates:
Many owners of beloved local businesses, especially in pricier cities, have been forced to swallow their pride and appeal to their customers in times of crisis – a process streamlined by the rise of online crowdfunding platforms.
Crowdfunding campaigns frequently fall far short of their goals, research shows. Estimates of failure in the industry vary, but study after study reveals that more than half of campaigns fail – and those that fail, fail hard. A 2014 study by Faculty Affiliate Ethan Mollick of about 48,500 Kickstarter projects found that among the failed projects, the mean amount of funds raised was just north of 10 percent. Only 3 percent of the projects that failed to reach their goal made it to the halfway point.
Crowdfunding has expanded to being a great place to invest money or help new products come to market by pre-purchasing. The Crowdfunding market saw over 87 Billion dollars exchanged in the market in 2016. This market has attracted scammers whose only purpose is to rip off with good hearts.
Faculty Affiliate Ethan Mollick in 2015 found that 9% of projects on Kickstarter fail to deliver as promised to their backers, and this number does include fraudulent projects. Based on this, consumers should closely watch for scams.
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.