Crowdfunding Seen Providing $65 Billion Boost to the Global Economy in 2014 (Infographic)
Crowdfunding is big. Really big. And it's going to get a whole lot bigger.
If you've been skeptical of all the crowdfunding buzz, consider this: By the end of 2014, crowdfunding is estimated to add at least 270,000 jobs and inject more than $65 billion into the global economy, according to estimates from crowdfunding platform Fundable.
In eight months, Fundable has been able to help startups raise $50 million worth of commitments, either in the form of donation-based or equity crowdfunding. In donation-based crowdfunding, an individual solicits funds from a group and in exchange gives a gift, like a tote bag or product sample. Equity-based crowdfunding is where a company sells a portion of its company in exchange for cash. Currently, an entrepreneur can only equity crowdfund from accredited investors who meet standard requirements for wealth. A law has been passed and provisional rules written which, when final, will allow entrepreneurs to equity crowdfund from anyone with the cash and the interest.
In addition to recent law changes, the popularity of and comfort level with the idea of crowdfunding is growing. Check out this infographic made by Fundable and entrepreneurship advocate Empact which includes some pretty mind-blowing estimates for where crowdfunding will be in 2020.
Catherine Clifford is senior entrepreneurship writer at CNBC. She was formerly a senior writer at Entrepreneur.com, the small business reporter at CNNMoney and an assistant in the New York bureau for CNN. Clifford attended Columbia University where she earned a bachelor's degree. She lives in Brooklyn, N.Y. You can follow her on Twitter at @CatClifford.