What Crowdfunding Will Look Like in 5 Years


Crowdfunding has exploded to become an industry worth billions of dollars annually. The growth has virtually double from year-to-year since its founding and it has benefited many different industries. From video games to board games, comic books to biographies, and all of those technological advancements, crowdfunding is literally changing the world in how entrepreneurs can secure the cash that they need.

What will crowdfunding look like by the year 2020? Although there is no way to fully predict the future, here is what we expect to see.

1. Equity Crowdfunding Will Engage All Sectors Of The Economy.

We’ve barely tapped the potential of equity crowdfunding right now. By 2020, it should be something that every business around the world considers if they want to transition from being a fully private company.

2. Economies Are Going To Stabilize.

The wealth gap around the world is astounding. Most of the population in the US, for example, belongs in the world’s wealthiest 1%. Then take the top 1% of earners in the US and you’ve got 50% of that nation’s wealth. When you’ve got more cash, then you’re allowed more investment opportunities that the average person just doesn’t have. Expect those regulations to loosen so more people can build real wealth.

3. It’s Going To Go Retail.

Do you need a new water heater? A garbage disposal? Money for school supplies? Crowdfunding is going to go retail like never before. People will be able to create lists of products that they need and then have their family and friends help them get them.

4. It Will Be Used As Advertising Bait.

The Chrysler Group has already experimented with this idea rather successfully. By offering customers the chance to design a custom product and then secure the financing for it, more people are exposed to the brand and its message. This can then create a spike in sales of the non-custom products.

2020 might be 5 years away, but by peering into the future, we can begin preparing for what the world of crowdfunding may become. If you think crowdfunding has changed the world already, just wait until it has 5 more years to grow.