Crowdfunding / Disruptive Innovation

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I found this interesting article about how a company crowdfunded protein bars made of crickets and it made me come to an interesting realization. Crowdfunding (the practice of funding a project or venture by raising many small amounts of money from a large number of people),
can enable anyone to disrupt any industry. Some companies consume all the market share simply because competitors don’t have the ability or resources to enter that industry. But with the ability to put your idea or product out on Kickstart, Indigogo, or one of the many crowdfunding platforms, it enables anyone to test the market and feasibility with consumer backing.

Do you think crowdfunding could have a direct correlation to disruption?


4 Responses to Crowdfunding / Disruptive Innovation

  • I think that crowdfunding definitely poses a potential for disruption, because it allows the average person to get funding. I think that crowdfunding is disruptive in its own right now. Whereas people/small companies with big ideas couldn’t compete before due to a lack of capital, websites like Kickstarter allow users to obtain funding based on the merit and popularity of their ideas. However, there is the caveat that the idea must be popular enough and marketed enough to gain a legitimate following and thus get funded.

  • I do think crowdfunding could have a direct correlation to disruption because they seem similar in many cases. It’s interesting that something like crowdfunding exists, and that the idea or product has to be popular enough to be marketed like jacklin stated.

  • Crowdfunding absolutely has a direct correlation to disruption: it removes barriers to entry, primarily capital. Between you (Dan) and Jacklin, the core things about crowd funding and its potential to disrupt have already been touched upon. I’d like to add, though, the similarities between this and 3D printing. 3D printing also removes barriers to entry, which in that case is the means to production.. while thinking about this, it made me realize that the two could be combined in a very beneficial way. A creative person could produce and actually test a product from their imagination at a very minimal cost in their home if they have a 3d printer (or at some point in the future when it may become more commonplace), and then use crowd funding to cover the other aspects of releasing a product onto the market, all while avoiding high production costs and the risk of losing money or loans from an individual’s pocket. Anyone else think this could be a mutually beneficial relationship?

  • I do think that crowd funding has the ability to disrupt. As the others mentioned, it allows individuals or small companies to gain the necessary capital needed to make their idea come to life. Also, I find it interesting that creators on crowd funding sites, like Kickstarter, retain 100% ownership of their idea, which could be a reason people opt to put their idea these types of sites for funding versus getting investors who will want a financial stake in their idea. However, one problem I see with crowd funding is that someone could steal your idea. If someone goes on a site like Kickstarter, and realizes they can make your idea and believes they can get it to consumers faster, they could effectively put you out of business.

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