Case Study

 The cultural influence on crowdfunding websites such as the popular Kickstarter.com is quite remarkable. Not only do projects and concepts become possible due to the need of funding, something that in the past was quite a task to secure but also the publicity that can be achieved just from submitting a project on the website is a great resource. While these are all great things to hear for an aspiring film maker (like myself) or entrepreneur, there are unfortunately some bad.

 Like with all online transactions, the crowdfunding network has severe risk. There are unfortunately dis-honest people who secure funding for projects that are bogus, taking funds from backers and running, leaving a bad taste in the mouths of those who have or may have backed legitimate people. In one recent case, a group called Magnus Fun Inc. hustled more than $120,000 from approximately 3.200 backers for their Kobe beef jerky scam.

 Of course not all people on Kickstarter are scammers, and there have been a slew of great ideas to come to fruition because of the crowdfunding model.  Unfortunately, there are dishonest people as well which can eventually make the risk to much for an investor, stopping this trendsetting method of funding dead in it’s tracks.

I also believe the financial impact on crowdfunding can play a major role in changing mass media as well. For example, many more independent films will come to the surface. People who had no means to produce music of their own and were forced to go the route of the major record label would be able to self produce but on a much bigger scale than publishing at home with a minimal budget. I believe this will influence major companies to invest while they can, knowing that there are now other means available.