Crowdfunding has become increasingly popular in the United States, especially since the passage of the JOBS Act. With the anticipation of equity crowdfunding and growth of perk-based crowdfunding, in general, the number of registered websites containing the word “crowdfund” has increased by a tenfold, reaching over 9,000. Campaigns on crowdfunding sites, ranging from video games to dance, have been able to raise hundreds of thousands of dollars. These sites give individuals the opportunity to not only raise needed funds for their ventures, but also help them connect and engage their network.
The growth of crowdfunding is not limited to the United States–it is an international phenomenon. All around the world, crowdfunding platforms have multiplied–serving almost every niche possible. Platforms worldwide have raised $1.5 billion to fund millions of projects.
Close to home, in Canada, there are now 17 perk-based crowdfunding platforms. The popular platforms include IdeaVibes, SoKap, FundRazr, and Small Change Fund. In order to voice the opinions of citizens and small businesses on crowdfunding, the National Crowdfunding Association of Canada was created. Many in the country believe that the passage of equity crowdfunding will support startups and help lead to job growth. The problem, however, is that there is no central regulator in Canada. In order for equity crowdfunding to pass, lobbyists must seek rule change in each of the country’s 13 provinces and territories.