18 years ago, the first recorded successful instance of crowdfunding occurred, when a British rock band funded their union tour through online donations from fans. Artistshare was inspired by this method to solve financial difficulties, it became the first dedicated crowdfunding platform in 2000. After that, more crowdfunding platforms began to emerge, and the crowdfunding industry has grown each year. Nowadays many projects are launching through online crowdfunding platforms such as Kickstarter, Indiegogo, Gofundme. Crowdfunding is a really effective way of calling for capital for entrepreneurs.
According to Fundable, “Crowdfunding is a method of raising capital through the collective effort of friends, family, customers, and individual investors. This approach taps into the collective efforts of a large pool of individuals—primarily online via social media and crowdfunding platforms—and leverages their networks for greater reach and exposure’’. To explain it in a different way, crowd funding is raising capital from society instead of from corporate investors, banks etc.
Crowdfunding in Africa
Africa discovered the power of Crowdfunding in recent years. In May this year, on Indiegogo, there was a project named 3D Africa that funded 106% of the target. This is a project that helps close the STEM gender skills gap. The girls in Youth for Technology’s 3D program learn to use 3D printing technology to print things like jewelry, phone cases and art. According to the program, the reason they chose stem was explained as – “Girls lag behind boys in STEM fields in the United States. But in emerging markets, the STEM gender gap widens significantly. Girls face steeper challenges stemming from culture, history, and social structure” .
We also can find other projects contributing to Africa’s economy on Kickstarter . Every project has its own mission but all of them have the same vision; which is, changing the lives of people in Africa and making their living conditions better.
We believe that with the growth of the Sharing economy as well as the Crowdfunding industry, we will have more chances to solve the problem of finance. And we could dedicate the positive value for society like the way it helps us to make our projects real.