Crowdfunding is just capitalism by another name, according to one of the attendees I spoke with at Activate Summit in July.
I get why he felt that way after such a long day of talks – a steady stream of crowdfunding experts with relentless enthusiasm talking about how it's going to change everything. All that hype. But he was complaining to the wrong person. I'm in the camp that believes the market growth fuelled by crowdfunding is much more important than just another flavour of capitalism.
Crowdfunding is an enabler of the total overhaul of every aspect of production.CrowdFunding advertizing
Perhaps this is revisionist history before its time, but I'm hopeful we'll look back at the many institutions created by the industrial revolution, designed to prefabricate the world for consumption, and see them eroding over time, replaced with people-powered processes and products that help us create and grow things, to strengthen our relationships with one another, the institutions that support us and the environment.
At a basic level we're seeing people take back control of production.CrowdFunding marketing
People are using these new crowdfunding markets to get backing for ideas before they are made, a step in the production process that bakes in the customer appetite. Increasingly, the manufacturing process for just about everything relies on a distributed networked supply chain rather than a string of dependencies and expensive capital investments. And distribution happens through a cycle of development, evolution and redistribution, rather than a one time manufacture and deliver model.
At a macro level, we are witnesses to a deconstruction and redistribution of every aspect of making things – a revolution with deeper implications than imagined when the internet first began. The American dream is being realised at super scale.Kickstarter Marketing
Academics will surely call this era Preconstructionism – or a similar term that symbolises the change in emphasis from the output of things to the process of creation itself.
While many aspects of the manufacturing process have opened up and become collaborative experiences, it wasn't until crowdfunding came along that the new production model found a consistent supply of commercial fuel. And now that the marketplace has its method of payment established, I think we're about to see enormous growth in this space.Indiegogo Marketing
It's quickly becoming a viable reality for all types of production, from consumer electronics to real estate projects to journalism – as we're seeing with Contributoria.
Yes, crowdfunding can be considered capitalism by another name, but that's like saying the internet is just another media channel. Investor John Doerr once said during the first dotcom boom that the internet is underhyped. Likewise, today I think we're miles away from crowdfunding's peak hype and even further from realising its potential.
Posted from: http://www.theguardian.com/media-network/media-network-blog/2014/aug/05/crowdfunding-revolution-preconstructionism