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Innovate or die: Crowdfunding’s existential problem

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Crowdfunding needs to be a story of a majority of successes, not failures.

Crowdfunding is facing serious challenges in keeping up with the extraordinary expansion the sector is seeing year over year.

It is, of course, a pretty good problem to have. When your biggest worry is ensuring your technology and systems are keeping up with the massive growth in your sector, it’s a difficulty most people would love to face.

Not so much for consumers, though.

True, in the big picture, the outcomes of crowdfunding in recent years have been spectacularly successful. But dig deeper and you find that individual crowdfunding campaigns tell a different story. The vast majority of campaigns do not succeed. Kickstarter’s own numbers say that only 44% of campaigns succeed – and that seems high by industry standards.

So while the aggregate of crowdfunding is a story of massive success, the individual stories that make up that narrative mostly have a different experience. It’s a bizarre dichotomy.

And it has to change.

In this series of blog posts, we analyze more problems with crowdfunding and how the industry needs to adapt and innovate.