5 reasons your startup isn’t ready for crowdfunding

Now let’s get one thing straight from the start: I’m a huge fan of Kickstarter, Indiegogo and the number of similar crowdfunding sites that have sprung up recently to provide capital directly to exciting business ideas. There’s something very “American Dream” about being able to build one-on-one engagement with consumers — not to mention how nice it is for companies to have a viable alternative to traditional VC and angel capitalization.

Crowdfunding: the next generation — four changes that will shake up the model

Crowdfunding has come a long way in a short period of time. What started out as a social experiment several years ago has been validated as a viable means for thousands of people to tap into their inner-entrepreneur. Recent data suggests that crowdfunding – defined here as a contribution toward a project in exchange for non-economic benefits — has enabled more than $1.5 billion to change hands and tens of thousands of projects to get funded, ranging from “passion projects” to real companies.

Kickstarter failures revealed! (infographic)

I recently came across Dan Misener’s article “Kickstarter hides failure,” where he talked about how crowdfunding site Kickstarter makes it difficult for you to see/find failed projects. They intentionally prevent failed campaigns from being indexed by the search engines (through “noindex” robot meta tags).

Crowdfunding raised $1.5B last year — and is on track to double in 2012

Until Kickstarter started gaining attention for giving people a place to raise huge amounts of money very quickly, the term crowdfunding didn’t mean much. Now, crowdfunding has become a full-fledged industry, contributing $1.5 billion to new ventures in 2011. That total includes pledges from average people backing quirky projects like the Pebble smartwatch as well as seed funding for startups.