Crowdfunding has grown into a multibillion-dollar phenomenon in just a couple of decades as internet platforms made it easier for the home innovators to market their ideas. With the emergence of new platforms and the growing popularity of this fundraising methodology among millennials, the World Bank estimates that the global crowdfunding industry will be worth more than $95 billion by 2025. It is essential to stick to these platforms not only for techies and tinkerers and for investors, so that these new trends in the industry enable serious profit-making opportunities.
It has transformed effectively from practice with limited sources of contributions (mainly charity) aimed at acquiring future products to enable crowd contributors to access opportunities for profit making. Entrepreneurs generally have limited opportunities to fund their businesses, and it is difficult for investors to evaluate small and medium-sized enterprises. 70 percent of the world's population is classified as potential investors who, because of their limited resources, do not have a large capital. This retail investor group is actively searching for solutions that will enable them to invest small amounts of money where only substantial capital is accepted—which is typically the most profitable investment.
In addition, with respect to blockchain claiming to make the entire process completely transparent, integration of blockchain, and acceptance of cryptocurrencies can significantly reduce fees. Furthermore, lowering fees means removing barriers arising from regulations.
Non-regulated crowdfunding platforms had already passed, however, with the rapid rise of ICOs and blockchain technology, many new platforms were incorporated into a tax haven. Today, crowdfunding is carried out primarily on the basis of national legislation, meaning that platforms are subject to regulation depending on the country where they operate. Crowdfunding has finally come with a steadily continuous growth that is not confined to a geographic area but is widespread throughout the globe. The advent of blockchain technology, smart contracts, regulation, micro-investment, and equity funding will be among the crowdfunding industry's highlights and is projected to increase exponentially in 2019.