How Millennials are Reshaping Crowdfunding.
It’s no secret that the millennial generation is shaking up the status quo in a lot of industries. From the way we shop to the way we invest, millennials are revolutionizing the way business is done. And crowdfunding is no exception. In fact, millennials are having a major impact on the crowdfunding industry as a whole. Here’s a look at how they’re doing it.
Increased Access to Capital.
One of the most notable ways that millennials are reshaping crowdfunding is by increasing access to capital. In the past, it was difficult for entrepreneurs to get funding for their ventures unless they had wealthy friends or family members who were willing to invest. However, with the advent of crowdfunding platforms like Kickstarter and Indiegogo, anyone can now post a campaign and solicit funds from strangers all over the world. This has democratized the fundraising process and made it easier than ever for startups to get the funding they need to get off the ground.
Higher Success Rates.
Not only are more startups able to raise funds thanks to platforms mentioned above, but those startups are also more likely to be successful. In fact, according to recent data, campaigns led by millennials have a success rate that’s nearly 10% higher than campaigns led by other demographic groups.
One reason for this increased success rate is that millennials are generally better at using social media to spread the word about their campaigns and engage potential backers. They’re also more likely than other age groups to offer rewards for backers, which can incentivize people to donate. For these reasons, there’s a growing pool of potential investors out there who are interested in supporting their innovation and entrepreneurship.
It’s clear that millennials are having a major impact on the crowdfunding industry. Crowdfunding is still a relatively new phenomenon, but it’s one that is quickly gaining traction among millennials. And while there are many reasons behind this trend, one thing is clear: investing in millennial-led startups via crowdfunding platforms can be extremely lucrative. So whether you’re a startup entrepreneur looking for funding or an investor considering putting your money into a crowdfunding campaign, it’s important to keep in mind how this powerful demographic is shaping the landscape.
