The Unquestionable Impact of Crowdfunding on the Startup Landscape

The startup community is seeing a major shift now that crowdfunding is such a prominent way to get the most innovative product ideas off the ground.

In the past, the only readily available options for startups were venture capitalists and angel investors. Now that crowdfunding has made such a huge impact, it’s easier than ever for startups to get the capital that they need to get their small business up and running in no time at all.

And crowdfunding has had a major impact that is creating waves throughout the business world. The best part about it all is that we, the consumer, gain access to amazing creations that may never have seen the light of day. We get to enjoy future focused, high-tech products that will help improve our lot in life today and create innovations for tomorrow.

How Did Crowdfunding Become so Popular?

In the beginning, major crowdfunding websites like Indiegogo and Kickstarter led the field and helped set this trend on a wild ride that eventually turned into the huge behemoth that it is today. These sites launched in 2008 and 2009 respectively, and they were designed to help the little guy raise money to fund creative projects and passion projects that would normally never see the light of day.

Since first stepping on the scene just a few short years ago, both of these companies are now billion-dollar organizations. They have literally revolutionized the way startups raise capital and launch products into the waiting arms of the marketplace. They changed the way we do business forever and thankfully, the consumer now has the opportunity to decide which products deserve funding and which ones may be ahead of or behind the times.

Why Is Crowdfunding so Prominent Today?

There are a number of reasons why strategic fundraising has reached the heights of popularity.

For starters, one of the biggest reasons why this way of funding a startup has become so prominent is because of its simplicity. It’s so easy to set up an online funding campaign on your favorite crowdfunding site and then simply share your story. And on the opposite side of the coin, contacting angel investors and venture capitalists is not only a pain in the neck, but it’s also far from being a sure thing. So, many startups recognize the value of crowdfunding and they are utilizing it to their full advantage.

Second, it’s easy to spread the message of your crowdfunding campaign and get it in front of millions of people that may potentially want to invest in your startup. If you have an awesome product that people are going to absolutely love, then your campaign will have no problem going viral on social media because people will be happy to share this information with others who will also find it attractive. And since it’s so easy to spread your message to millions, if not billions of people, finding future customers that are ready to fund your startup is easier than ever.

The Era of Innovation

Times are always changing and you’ll have to continue to change along with them to stay ahead of the curve. Crowdfunding is such a powerful tool because it gives innovative entrepreneurs the ability to raise corporate level funding from average and ordinary people. And they can do so without having to practically kill themselves to gain access to financing needed to get their products developed and off the ground.

In the era of innovation, some amazing companies were able to use crowdfunding to launch their products and achieve massive success. Two major examples that immediately stick out are:

  •        Pebble Smartwatch – they used online funding to raise more than $10 million to develop and launch their startup.
  •        Oculus – this innovative company raised $2.5 million to get their business off the ground. What’s even more amazing is that they were able to sell their company for $2 billion a mere two years later.

There’s no question that the landscaping for startups is changing. Product innovators have the ability to shine online and raise the necessary funding needed to help build their business while they take advantage of this incredible opportunity.

We also live in the age of acquisitions. You never know when a big business is going to fall head over heels in love with your company or product and offer a huge financial incentive to sell your company to them. It’s an amazing time to be a product creator in the crowdfunding era.


Do you have an innovative idea that could revolutionize the high-tech business world? Do you have an idea for a product that could provide massive value and benefits to your target audience? It’s time to think about developing this product and launching it into the world. The easiest way to make this dream a reality is to use crowdfunding to help fund your future startup.