Crowdfunding Trends to be Aware of in 2024

It’s a whole new year, and Crowdfunding is more popular than ever. I figured it was time to see what things we should watch out for in 2024 regarding Crowdfunding Trends or movements. Join me while scribing this here, missive.

Crowdfunding for Creatives

Crowdfunding continues to rapidly transform how creative projects and impactful initiatives are funded by establishing a direct connection between creators and their supportive communities.

A vivid illustration of this trend can be found in the campaign for “Axcend: Level Up Vol. 1” on 9livescomics.com. This project underscores how artists and creators utilize crowdfunding platforms to realize innovative and imaginative works and cultivate a unique bond with their audience. Through platforms like these, backers become more than just funders; they become integral parts of a community that actively participates in the creative process, demonstrating the power and potential of crowdfunding in bringing visionary projects to fruition.

Underrated, underappreciated band The Call also leverages Crowdfunding to help fund their new studio album (Kickstarter).

Artists, musicians, and filmmakers find crowdfunding a natural fit for their creative projects. By sharing their work on platforms like Kickstarter and Indiegogo, they can connect directly with their audience, who can financially support their projects. This direct connection allows creators to maintain creative control over their work while building a community of supporters.

The Impact of AI on Crowdfunding

Artificial Intelligence (AI) is no doubt having an impact on the Crowdfunding space, too! Here are a few of the low-hanging-fruits that I believe AI can have a direct and immediate impact.

• Enhanced Risk Evaluation: The role of AI in gauging the risk tied to crowdfunding endeavors is set to expand. Utilizing machine learning, these models will sift through past data, gauge social media attitudes, and consider various indicators to forecast projects’ potential success or failure. This advancement promises to bolster the decision-making process for both backers and project initiators.
• Strengthened Fraud Detection: The capabilities of AI in identifying and mitigating fraud on crowdfunding platforms are expected to advance further. These platforms can pinpoint and act upon any dubious activities or transactions through AI-driven algorithms, significantly lowering the chances of deceitful schemes and scams.
• Better Campaign Suggestions: AI technology will offer tailor-made project recommendations to users. By delving into an individual’s browsing habits, preferences, and previous investment ventures, AI tools are designed to highlight campaigns that best match a user’s unique interest and investment profile.

With the ongoing advancement of AI technology, we are also witnessing a pivotal shift in Crowdfunding platforms towards implementing more advanced tools for content creators and Campaign Owners. Give.Asia has innovated by creating its proprietary artificial intelligence (AI) tool, enhancing the crowdfunding platform’s ability to craft content for fundraising initiatives. This wild tool helps creators with less funding and resources and empowers them to create whatever assets they need, such as images, videos, text/copy, and so much more!

Regulatory Crowdfunding Changes

In 2023 and 2024, no significant regulatory changes specifically about crowdfunding have been instituted. The most recent substantial changes to crowdfunding regulations were related to the increase in the aggregate offer limit from $1.07 million to $5 million for Regulation Crowdfunding (Reg CF), which occurred before 2023. This change was part of the Securities and Exchange Commission’s (SEC) effort to facilitate capital formation and expand investment opportunities for businesses and investors.

Regulation D Rule 506(c), which allows startups to raise unlimited capital from accredited investors through general solicitation without SEC registration, provided they verify the accredited status of investors, has been in effect since 2013 and remains a significant aspect of equity crowdfunding. However, this is not a new change for 2023/2024.

Still, it’s a good idea to keep an eye on US- and EU-related crowdfunding changes as the demand (and use) for crowdfunding continues its rapid expansion.

Finally…

The Crowdfunding landscape is evolving remarkably, marked by the burgeoning integration of technology and community-driven support for creative projects.

Platforms like IgnitionDeck and others are at the forefront of this shift, offering artists, musicians, and filmmakers a digital stage to bring their visionary projects to life with engaged and supportive community backing. Introducing Artificial Intelligence (AI) into this space promises to enhance risk evaluation, strengthen fraud detection, and personalize campaign recommendations, further refining the crowdfunding experience for creators and backers.

Despite the absence of significant regulatory changes in 2023 and 2024, the increase in the aggregate offer limit for Regulation Crowdfunding (Reg CF) to $5 million signifies a notable advancement in facilitating capital formation and broadening investment opportunities.

As crowdfunding grows and adapts, it remains an indispensable tool for creative expression and innovation, embodying the collective aspiration to shape a more interconnected and empowered future.