Crowdfunding allows people to get behind potential products which they would like to fund and eventually purchase, this gives consumers a say in what products see the light of day and helps hopeful entrepreneurs from mass producing something that no one wants.
Crowdfunding is a novel method for funding a variety of new ventures, allowing individual founders of for-profit, cultural, or social projects to request funding from many individuals, often in return for future products or equity (6).
Crowdfunding first became known as a way for independent artists, filmmakers and others to raise money for their projects by persuading a large number of people to make small donations through the Web. Then it caught on as a way to help launch small businesses (1).
Over the course of the past five years, the crowdfunding industry has grown from a fringe phenomenon, allowing indie artists to monetize social capital, to a multibillion-dollar industry (9).
Now that crowdfunding has turned the corner into a mainstream fundraising mechanism, large corporations will actively look to incorporate the social ritual, and monetize the process (9).
Sites like Kickstarter continue to grow as both entrepreneurs and consumers alike are enticed by the offerings that are only available through the process of crowdfunding. It allows for a great funding method as well as the minimization for lost costs if a project proves unsuccessful.