IT World has entered into the soothsayer realm and is now making predictions on the future. It is pretty safe to say that no-one will remember these predictions by this time next year so there is not too much lost at getting this wrong. We will concur with their number 1 prediction though – 2013 will be the year of Crowdfunding. That is if the SEC and all vested interests can come together to push the regulatory framework through so we can throw the switch in 2013.
Anyone else have some predictions?
1. 2013 will be the year of crowdfunding for tech startups. Early in 2013, the SEC will pass the final rules for equity-based crowdfunding, giving rise to a big wave of crowdfunding platforms that allow startups to offer equity to the masses without having to go through a costly IPO. The new model, which I call an “Initial Crowd Offering” or ICO, will provide a new infusion of cash to startups that have previously been unable to obtain financing through traditional sources (banks, VCs, “friends and family”), which is pretty much all of them lately. Sites like Kickstarter laid the groundwork here, but have been limited in scope, offering only a platform for mostly creative projects seeking donations. The new crowdfunding will legitimize crowdfunding, bring Wall Street to Main Street, and usher in a new wave of entrepreneurial activity.