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Crowdfunding platforms raised $2.7 billion globally in 2012

By Shawn Knight
Apr 9, 2013
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  1. Crowdfunding campaigns are most often associated with nifty electronic gadgets but in reality, that’s only part of the equation that led to an 81 percent increase in money raised during 2012. Collectively, these platforms managed to generate $2.7 billion and...

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  2. cliffordcooley

    cliffordcooley TechSpot Paladin Posts: 5,977   +1,487

    Geez what a no-brainer, when has anything popular ever stayed social? Business has always destroyed anything social, once it gained popularity.
  3. MilwaukeeMike

    MilwaukeeMike TS Evangelist Posts: 2,068   +704

    I think you misunderstood that line (or maybe I do). The focus will shift away from social causes because they don't make any money. Social, meaning things like facebook, which as you know, has had a lot of trouble making money even though it's got like a billion users. We are used to social tools being free.

    Business uses have a much better chance of making money. A store or website that sells something will usually make more money than a website that needs to sell advertising.

    Both have to make money or they won't survive. The goal of a business is to make money, and the goal of a social cause is to get people to interact. You can see why businesses are more attractive to investors.
  4. cliffordcooley

    cliffordcooley TechSpot Paladin Posts: 5,977   +1,487

    Your probably right, after reading your explanation it kinda makes more sense.
  5. avioza

    avioza TS Rookie Posts: 55   +15

    I thought he wass referring to the Idea that crowd funding currently represents people investing money in causes they care about for philanthropic reasons, or at least investing in product development they would like to see realized even though they dont make money from their investment.

    But with that much money changing hands, it is likely to be used for mercantile purposes in the future, potentially polluting the current ideals that drive crowd funding?

    I dont see anything wrong with that, but the incentives for investing would have to be improved to shares of a company or something like a typical venture capitalist would be interested in.

    I invested in a space simulator game because lack of mainstream intrests prevent game makers/publishers from creating it, as they will not make boatloads of money. I just wanted the game to be made...
  6. MilwaukeeMike

    MilwaukeeMike TS Evangelist Posts: 2,068   +704

    Well... not to be picky, but investing means you're expecting a profit (more money back than you put in). You invest in a house because you can make money when you sell it. You 'buy' a car because you're going to get use out of it, but it's going to be worth less when you're done. (Even if the salesman does call it 'investing')

    If you're sending money to someone for philanthropic reasons then I would call it 'donating.'


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