This morning on the radio I heard a show about Social Financing. It's something about not-for-profits being less dependant on principal funders, but when they said "social financing" it got me thinking about companies like Kickstarter, an online funding platform for creative projects. It allows people to use social media to find project funding from individuals. The model puts value on even the smallest financial contribution and it's changing our commercial landscape. It seems to be working really well for getting creative projects started. I've seen movies produced, books published and product prototypes put into production. Huge success!

But what about bigger commercial projects or social services. We pay taxes for the later of those things, but what if even government could use a Kickstarter-type service to find extra funding from supportive individuals? What if your friend's new company was looking for start-up capital through Facebook and twitter? What about finding financial support for my christmas vacation next year?

Infinite possibilities can be powered by $20 toward that friend or organization you 'like' … multiplied dozens or zillions of times of course. I guess what I'm asking is, do you think Kickstarter will change capitalism as we know it?

 

2 comments




by Heather

I just recently participated in a social financing activity for an individual needing a down payment for a house. She was asking for either donations or in return, a homemade gift in value of your contribution. It was very successful and it only took a couple of days to raise the money. It was a powerful and moving community event to participate in and witness!!

02.18.2013

by Eleanor

Cool Heather! Did she use an online service to do it?

02.18.2013

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