Crowdfunding, not as good as first thought?

by Developed Africa 6. January 2014 09:00

We have recently posted about the positive impact crowdfunding sites could have in Africa, now we look at reports in the UK that it is getting harder for small groups to get noticed.

A recent article from the BBC told of how a number of groups are finding it increasingly hard to get noticed on crowdfunding sites as there are now so many people vying for attention and funding through the various services.

Some entrepreneurs say it's got so competitive, and there are now so many projects listed screaming for attention, that it has become very difficult for small players to get noticed."

The main thrust of the article depicts the issue that a number of entrepreneurs are having with the websites, not receiving funding. Now, the owner of one of those websites argues that this is just because maybe their idea isn't needed or interesting the world- a valid point. It is unrealistic for entrepreneurs to assume that they will definitely get funding for an idea, and be affronted if the sites do not get them the money they want, it might not be a valid idea. However, an issue related to this is the possibility that some larger groups (or already established businesses) could be getting more attention due to their size, which is making it harder for smaller projects to get noticed.

Furthermore, is this going to be an issue for African crowdfunding soon? We would expect not, at least not quite yet. The notion of crowdfunding in Africa has only recently taken off, and there are only a couple of sites available at the moment; leading us to believe that crowdfunding is still a viable option for entrepreneurs in Africa. 


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