The alternative finance : Crowdfunding

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Definition 

Crowdfunding is a form of alternative finance which has emerged outside of the traditional financial system. Participative financing is an expression describing all the tools and methods of financial transactions, with contributions from a large number of people for the development of a project.
Crowdfonding developed with the advent of internet and mainly with social networks. It represented in 2015 $34.4 billion with more than 500 platforms. The magazine Forbes anticipates the market of the crowdfunding will reach $1 trillion by 2020.

In France, 1,3 million contributors brought their support to an operation of crowdfunding since its launch in 2008.

Crowdfunding platforms propose five types of financing:
• Donation without compensation
• Donation with compensation
• Loans to individuels or businesses
• Equity crowdfunding
• Community production

Contemporary history

  • Crowdfunding isn’t really new: in 1875 the statue of Liberty was one of the first monuments financed by public subscription. About 100,000 French people took part in the project, for a total amount of 400,000 collected FRF.
  • More recently in 1958, director John Cassavetes declared in a radio program than he could shoot a movie freed from producers if every auditor sended him 1 dollar. He received the next day 2,000 dollars, which allowed him to produce Shadows the same autumn.
  • The appearance of websites such as Indiegogo and Kickstarter in 2008 and 2009, has generated the development of this type of financing in several domains.
  • Politicians also rode the wave: in 2012 president Barack Obama used crowdfunding to finance his election campaign.

 

Top 10

According to boursorama, the top 10 of the biggest hits in the history of crowdfunding is:
1. Star Citizen : $74,01 millions
2. Ethereum : $18,44 millions
3. Pebble Time : $17,07 millions
4. Coolest Cooler : $13,29 millions
5. Pebble : $10,27 millions
6. Exploding Kittens : $8,78 millions
7. OUYA : $8,60 millions
8. Hôtel Weissenhaus : $7,76 millions
9. Pono Music : $6,23 millions
10. Mayday PAC : $6,13 millions

Mourad LAHMER,

Étudiant au master 2 Commerce électronique à l’université de Strasbourg et vivement intéressé par les nouvelles technologies appliquées à la distribution.

A propos de Mourad LAHMER

Étudiant en Master 2 Commerce Électronique au sein de l’Université de Strasbourg, titulaire d’un M2 en Finance Participative au sein de l’Université de Strasbourg et d’un M2 en Marketing à l’IAE de Dijon, avec une expérience professionnelle de 11 ans, vivement intéresse par l’économie participative.

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