The future of crowdfunding The future of crowdfunding

The future of crowdfunding

   

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Conceived as a form of grassroots and online financing, over the years crowdfunding has become one of the most efficient tools for sourcing the funds needed to bring projects to life; making the most of the showcase offered on a vast number of platforms (the most well-known of which are the American Kickstarter and Indiegogo, but there are a considerable number in Italy too, as we shall see) which allow anyone to finance, if only in small amounts, the most interesting projects.
The most widespread sort of crowdfunding is based on reward: whoever decides to participate in an online funding initiative will in exchange receive not only the product, but also a personal dedication, a limited edition, participation in exclusive events and more besides. Other campaigns however expect donors to invest in a business’ share capital (a framework which is monitored by CONSOB in Italy) or merely make donations to charitable entities and non-governmental organisations.
In recent years, crowdfunding has experienced a real boom, transforming some of the most successful projects into media phenomena. Such is the case, for example, of the Pebble smartwatch - the most successful project of all time, which accumulated an amount not far off 20 million dollars - or board games like Exploding Kittens, which exceeded its 10,000 dollar target in a mere 8 minutes and accumulated a total of 8 million dollars from 220,000 donors. In Italy, there has been much discussion around the Parma Calcio campaign, following its financial collapse, the football club used crowdfunding to collect 238,000 euros from its fans, double the target established by the company.

Overall, this kind of collective financing is destined to become more and more common and continue its considerable growth. Meanwhile, users across the globe have also become more cautious, following the numerous cases of fraud that have occurred over the years.
In 2018, crowdfunded projects have collected something like 9.3 billion dollars; a growth of 43% compared to last year. The total number of projects has also risen by over 34%, reaching a sum of 8.7 million. According to Statista, crowdfunding will continue its considerable grow over the next few years, despite an inevitable slowdown; by 2022, turnover from crowdfunding is expected to reach 22 billion dollars, financing a total of over 17 million campaigns.
In terms of countries where crowdfunding is more widespread, there is a surprise: China is the nation which has collected by far the most money; the total is 7 billion dollars (over two thirds of the global total). The United States follow, exceeding the billion dollar mark with a slight margin, while the others are some distance behind: United Kingdom (156 million), Japan (94 million) and France (93 million). What about Italy? In our country, over the course of 2018, crowdfunding has accumulated close to 35 million dollars; taking advantage of our most well-known platforms, such as Eppela and Produzioni dal Basso, as well as those dedicated to specific topics. In Italy, Musicraiser (dedicated to the financing of musical projects), Land2Lend (intended for agriculture) and Cineama have also been established.

TIM Sostiene add itself to this list: TIM’s crowdfunding platform – which aims to support medical and scientific research and environmental, cultural and social projects – has accumulated, to date, more than 4 million euros with the help of around 30,000 donors. Amongst the projects underway, the standouts are #IostoconPaolo (I’m with Paolo), which supports the fight against ALS, the Programma il Futuro project, which provides primary and secondary schools with the tools needed to teach the basics of IT, and many more besides. A simple and effective tool which allows each of us to contribute to the development and wellbeing of our country.