Think crowdfunding is a social media fad? It’s in fact a valuable tool used even by stars in Hollywood. Legendary musician Neil Young recently turned to crowdfunding to launch a new music technology. It’s not just for launching once obscure inventors into the mainstream thanks to the presentation of an idea. Industries have embraced crowdfunding and see the value in how it promotes ideas that might be otherwise overlooked.
“I think crowdfunding is a wonderful democratization of capital,” says Kay Koplovitz, the founder of USA Network. “It allows many more people to come into the marketplace.”
Big Think sat down with Koplovitz at Exponential Finance, presented by Singularity University & CNBC to discuss how crowdfunding can continue to evolve as well as shape industries. She points out that the technology is mostly used by early stage ventures. But it may even challenge venture firms, at least at the modest level of the $5 million range. Angel investing clubs like Bell Capital, Golden Seeds, and 37 Angels are already popular for start-ups and small businesses, she says.
“I think it’s a very exciting time in the marketplace and this, I think, is going to loosen up some of the capital,” says Koplovitz. For more on her take on how crowdfunding may continue to evolve and change how companies find funding, watch this clip from Big Think’s interview: