The New York Times Editorial Staff - Crowdfunding

Offices for Kickstarter, the popular online crowdfunding website, at their headquarters in New York, Sept. 15, 2015.

Crowdfunding has been utilized for a wide variety of entrepreneurial projects, and this volume designates four major areas where it has been most prominent. Scientists, researchers and entrepreneurs have used crowdfunding, especially if they have been unsuccessful trying to obtain funds through traditional methods such as foundation grants. Community-sourced funds have been used to produce smart watches, conduct research on lake pollution and build bionic pancreases. Arts and entertainment projects are also common, including the famous example of the fan-backed Veronica Mars reunion film, which broke several fund-raising records in 2012 and demonstrated the power of passionate fans in a crowdfunding context. Even political activism and philanthropy endeavors have benefited from crowdfunding, raising funds for refugees and victims of natural disasters or mass shootings.

Gaining traction and controversy in more recent years are personal crowdfunding campaigns. Asking for support from the community to cover medical care, a memorial service, education expenses or even a much-needed vacation has become increasingly common. Crowdfunding as a tool can create a casual and accessible environment where people in need feel they can ask, and those that can help may do so. The lack of accountability and relative anonymity of those asking for help, however, means the funds generated for a certain cause may in fact be used for something else, or even the heartwarming story used as an appeal could be false.

This is one major way that crowdfunding attracts controversy, but it is not the only one. Celebrities like Zach Braff and Spike Lee have attracted debate when asking for help funding their projects, as many consider it in poor taste for the rich and famous to solicit funds from the crowd. Established celebrities likely have access to more traditional forms of financing, and their presence on platforms like Kickstarter can take space and attention away from first-time project producers in more dire need. Their presence on these sites, however, can widen the donor pool, and may encourage people to patronize other crowdfunded projects.

The rapid rise of crowdfunding is a complex issue, and it is undeniable that many innovations we enjoy today would not exist without this method of fund-raising. As social media and networking continue to be omnipresent in contemporary culture, it is clear that crowdfunding is here to stay, though its structure will likely change and adapt alongside innovations in science, technology, the arts and activism.

CHAPTER 1

Funding Science, Technology and Start-Up Companies

In recent years, scientists, researchers and entrepreneurs have turned to crowdfunding to get their projects off the ground, especially when traditional methods of financing have been unsuccessful. In 2016, a new rule was established allowing anyone to risk $2,000 a year or more investing in small companies in exchange for a stake in the business. This ruling represents a major shift toward accessible investing for a more diverse group not just the wealthy fueling a greater range of crowdfunded research and products. This chapter details a variety of crowdfunded ventures in the realms of science, technology and emerging companies from 2012 through 2017.

Young Scientists Embrace Crowdfunding

BY KELLY SLIVKA | MAY 29, 2012

CROWDFUNDING, OR APPEALING to the online community for funds for personal projects, seems to be thriving. One of the best-known platforms is Kickstarter, which generally features projects that are creative in nature musicians seeking to record an album, for example, or inventors pursuing an idea.