Crowdfunding – the (usually online) collection of finance from a large number of supporters for a particular purpose, such as funding an idea – has taken the online world by storm in recent years, and especially in the startup space. It’s still getting bigger, especially since – in the US – President Barack Obama in 2012 put pen to paper on the Jumpstart Our Business Startups (JOBS) Act, that amongs other measures designed to encourage funding of small businesses in the country by easing various securities regulations, also allows them to accept small contributions from private individuals.
How big is crowdfunding now? Research estimates $5.1 billion has been raised through crowdfunding in 2014 to date, twice the amount raised for the whole of 2012 since the SEC relaxed its ban on general solicitation.
Here’s an infographic from BusinessProfiles.com that takes a look at where crowdfunding is right now and where it may head in the near future: