Crowdfunding Day
Crowdfunding is the practice of funding a project from small amounts of money coming from a large number of people.
While it may seem like a more modern innovation, it actually goes back to the 19th century as an effective way of raising money for causes and projects.
Crowdfunding Day helps teach people about the usefulness of crowdfunding and how it today has changed the lives of businesses all over the world.
History of Crowdfunding Day
Crowdfunding has been around since the 1800s and was founded by the famous French philosopher and sociologist Auguste Comte.
In his historical work “Premiere Circulaire Annuelle adressée par l’auteur du Systeme de Philosophie Positive”, he introduced the sociological theory of Positivism to the world.
Positivism refers to the relation between the dependence of theory and observation, relying on the scientific method to assure authentic knowledge.
While this abstract concept was in part founded by Comte, Comte used this ideology to help fund his research as a philosopher, ultimately creating the first forms of crowdfunding.
As part of the first crowdfunding success, the philosopher published his work on this day in 1850.
The term for crowdfunding and its more modern success came in 1997, when a British rock band funded their reunion through online donations from their fans. ArtistShare from there forward became the first company to create a crowdfunding platform and from there, the crowdfunding industry kept growing from there.
Today, crowdfunding is a huge part of many businesses economic success and still continues to grow. In 2015, crowdfunding campaigns received a global total of $34 billion, which compared is double the annual budget for the US NASA programme.
The industry is predicted to grow to over $300 billion by 2025, so take the time to celebrate crowdfunding, one of the main ways that the projects you love can come to life.
How to Celebrate Crowdfunding Day
If you love what crowdfunding has done for your business, then get your fundraisers going and start a crowdfunding project. Help grow your business by reaching out to people, telling them about your passions and projects and let the money come in.
Help crowdfund for other projects that you know about and send them money. Help business comes to life by sharing this holiday on social media using the hashtag #crowdfundingday.
Let your friends and family know what crowdfunding is all about and celebrate its history in the business industry by talking about the best ways to crowdfund for the passions you love.
Crowdfunding Day FAQs
What was one of the earliest forms of crowdfunding?
Crowdfunding has roots in the 1700s. In 1735, writer Alexander Pope used a form of it to publish his English translation of “The Iliad.”
Fans paid in advance to fund his work, which was costly and time-consuming. This early “subscription model” resembles modern crowdfunding campaigns, where fans support creators they believe in.
What’s the most surprising crowdfunding success story?
A famous “potato salad” campaign in 2014 raised over $55,000 on Kickstarter.
The project started as a joke: the creator, Zack Brown, only wanted $10 to make potato salad.
Instead, the internet rallied to fund it, eventually transforming the project into a party for backers with live-streamed potato salad-making!
Are there any unusual laws that regulate crowdfunding?
Yes! In the U.S., the JOBS Act of 2012 was crucial in allowing “equity crowdfunding.”
Before this, only wealthy investors could fund private companies. The act lets small investors legally own shares in startups they back, democratizing investment and opening new doors for small businesses.
How does Japan celebrate crowdfunding differently?
Japan focuses on community-focused projects. A popular platform, Campfire, backs projects to revitalize rural areas, support artisans, and promote local festivals.
Many Japanese campaigns fund traditions, like restoring old temples or producing seasonal foods. Crowdfunding here is more communal than entrepreneurial.
What are some myths about crowdfunding?
One common myth: all campaigns succeed with the right idea. In reality, over 60% of Kickstarter campaigns don’t reach their goal.
Successful campaigns often require extensive pre-launch work, marketing strategies, and updates to keep supporters engaged. Most failures stem from insufficient planning or visibility.
Which countries are leading in crowdfunding innovation?
China, the U.S., and the U.K. dominate the crowdfunding world. China leads with platforms like JD Finance and Ant Financial, generating billions through a mix of rewards-based and equity crowdfunding.
The U.K. pioneered “peer-to-peer” lending, with platforms like Funding Circle, which funds small businesses.
Is there a cultural crowdfunding project that gained worldwide fame?
Yes! The Statue of Liberty’s pedestal was crowdfunded in 1885. Newspaper publisher Joseph Pulitzer encouraged Americans to donate, with gifts starting at a penny.
Over 120,000 donors made it possible to build the pedestal, bringing the Statue to life in New York Harbor.
Are there specific crowdfunding platforms for social good?
Yes, some platforms focus on charity and social causes. GoFundMe is widely known, but others like Chuffed and Kiva focus on nonprofit ventures and microloans.
Kiva lets individuals lend as little as $25 to low-income entrepreneurs globally, making it a popular choice for people wanting to support social change.
What are some quirky crowdfunding campaigns that failed spectacularly?
In 2016, a campaign to create “Grave Robbing for Morons,” a film inspired by a 1987 home video, raised only $54 of its $1,000 goal.
Another campaign, “Goat Simulator MMO,” promised an absurd multiplayer goat simulation game but failed to garner support, proving humor alone isn’t always enough.
Are there unique traditions that have emerged around Crowdfunding Day?
While there aren’t official traditions, crowdfunding platforms often celebrate the day by promoting iconic campaigns from previous years.
Some companies even hold “Idea-A-Thons,” where employees pitch creative ideas for crowdfunding. Fans also host online “pledge parties” to support their favorite projects.
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