Blog Essay: Crowdfuding

For my research paper, I looked at the rise of crowdfunding and how it’s more than a tool to raise money but that creates conversation.
Through my research I found that crowdfunding sites shared the stories of people, mostly reaching out for help financially, but other in return they got surprising results resulting in conversation. 

Crowdfunding is the process of soliciting individuals and businesses for funds from a diverse audience. Crowdfunding is a digital platform where a story can be shared and donations can be given with the possibility to meet the founder or a small token or product sample. Billions of dollars have been raised on over 500 platforms since their creation( Gerber & Hui, 2013). However many of these sites have not been proven credible and this don’t have large communities. But the platforms that are most popular have shown to create the most communications between the donors and receivers.

Crowdfunding sites allow for those asking for money to share their stories on social media platforms. The increased amount of donations is due to the increased availability of donation platforms. The process of Crowdfunding has provided a means for inventors and those with a cause to generate support or ideas from others. If on social media and a post from a friend or family member comes up requesting support for someone they know, you are likely to click on the story and donate, or at least send a message of support. Crowdfunding gives the opportunity for all to participate in aiding someone or in helping to create a product. The addition of social and digital media, donating to and generating awareness of causes has enhanced Crowdfunding accessibility and effectiveness

There are several types of behaviors related to Crowdfunding such as consumer, philanthropic, and peer-to-peer interaction. Crowdfunding platforms are tailored to specific purposes. Philanthropic and consumer usages are some of the more common platforms used today. The difference between the two are the emotions attached to the donations; “For non-philanthropic Crowdfunding projects, we expect feelings of empathy and guilt to be less relevant, while social identity and social status concerns may figure more prominently” (Gerber & Hui, 2013). Cause related donations to crowdfunding sites range from donating to large organizations such as the Red Cross to donating to help pay medical bills for someone in need.

 Peer-to-peer interaction occurs within donations to consumer and philanthropic causes. Teams of scientists were using the platform Kickstarter, which specifically works with startup companies and products, was raising money to create an innovative light bulb and needed advice. They decided to ask their donors and in response they fixed the issue and won a science award.

            Crowdfunding is changing the purpose of fundraising. We are now not only able to fund a campaign more quickly online, but can ask for opinions. Crowdfunding is not clearly a social media platform but the interactions that people have on crowdfunding sites are one of the more effective ways to learn and create conversation. As crowdfunding grows, it will most likely become more streamline with only a few competitors with lower fees and more interactions. The main purpose of crowdfunding is to earn money, but most importantly create conversation.