The Rise Of The Crowdfunding Economy

The Pebble Time smartwatch just raised more than $20 Million dollars on Kickstarter and it has dethroned the the Coolest Cooler campaign which raised $13 Million. This is a clear indication that if you are working on something that users want, they will be willing to put their dollars on the line to help you bring your ideas to life.

According to the world bank report in 2013, the crowdfunding market will reach about $100 Billion by 2025. This might as well disrupt the Venture capital world if they don’t evolve to a better option. Kickstarter has so far helped 80,000 companies not only prove they are working on ideas people want but also raise over $1.6 Billion. This in turn keeps them in control of their company.

In Uganda today, we see crowdfunding startups gearing up to help individual working on worthy causes and products to raise money from everyone with access to the internet and a mobile phone or bank account. From Fezah which started out helping artists to raise money to release their albums to Akabbo which is doing the same but for any individual or not for profit organisations.

With the growing numbers in connectivity, I see a lot of relevancy in the crowdfunding startups because they are taking an already existing process, which is raising money from the masses and putting it online to make is more convenient and accessible for people with an internet connection.

Some stories from the crowdfunding campaigns show you that the people really care for what your are doing but make sure you preach to the right crowd to raise the money, like 23 year old Saxophone player Michael Kitanda raised money to record his first debut album Saxfaction, which you can get on Fezah.

In the startup world we want to build it, and they will come. What if they don’t come? what if they even can’t pay for it? The crowdfunding market offers a better option which is, ” If they like it, they will pay to build it” and that is an option everyone who doesn’t have money and is just starting out should look into.

For the local crowdfunding companies like Akabbo, find a way of helping people who are already having a working but hectic way of raising money and make it better and more convenient for people to support their campaigns. Ror local startups looking to raise money, know who you want to raise the money from and how best to reach them.

I just can’t wait to see a Ugandan cause or startup raise millions of dollars from a crowdfunding campaign and before you think this is a crazy wait, remember the world is connected now so everything is possible.

Let me know what you think by leaving us a comment or tweeting us @pctechmagazine and @nickle_las.