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Finance / Crowdfunding

These Are the Models That Dominate Today's Multibillion-Dollar Crowdfunding Market

Former Staff Writer
1 min read
Opinions expressed by Entrepreneur contributors are their own.

Though crowdfunding may seem like a relatively buzzy phenomenon given the emergence of digital platforms, it’s actually an age-old financial model dating back to the 1800s.

“They crowdfunded the pedestal of the Statue of Liberty over 100 years ago,” says expert consultant Sally Outlaw. “[Joseph] Pulitzer went to the crowd and said we need a dollar per person, and 100,000 people gave a dollar.”

But as it evolves from donation-based to reward-based to equity to Regulation A+ -- which is like a mini IPO -- crowdfunding is ultimately here to stay, according Outlaw. For more about the crowdfunding models that comprise the lion’s share of today’s multibillion-dollar market, check out the below video, captured at our inaugural Entrepreneur 360 event last fall in New York City.

Related: 2 New Crowdfunding Pathways That Entrepreneurs Should Keep In Mind

3 Crowdfunding Tips Every Company Forgets From a Brand That Raised $800,000 and Got Acquired