Crowdfund Insider | By Sherwood Neiss & Jason Best | May 12, 2014

One of the benefits of helping launch and continuing to work with the global equity and debt crowdfunding movement is the innovative companies that show up at our door. These organizations are changing a number of industries and none of them are kids in garages with gadgets. The future of crowdfunding will include a variety of asset-backed platforms and consumer-feedback plays. Why? Because assets can be sold for cash in the event of default and consumer feedback will build smarter products built ‘for the consumer BY the consumer.’

As we look at what is happening today and look out 24 months, we want to share what we see coming. Here are 4 industries that will be disrupted (at various speeds) by crowdfunding and why:

Big brands like Nike & MasterCard – Connecting the Crowd to ROI

Crowdfunding is a true business case for the social Web that can directly connect revenue generation to social media activity with measurable ROI. Crowdfunding is more than buzz and brand building. It’s a key channel for product design, customer insight, sourcing innovation, and talent acquisition. Entrepreneurs seeking to discover product market fit are posting their designs and products on crowdfunding sites as product pre-sale campaigns. Nothing helps a brand understand what the customer will buy more than actually selling the product to a customer. Big brands like Nike and MasterCard that take time to understand how to leverage crowdfunding to better product design will be winners. Companies that incorporate this new strategy into their efforts could save on product R&D costs significantly. In addition, the HR departments of these brands may benefit in recruiting talented innovators for their teams.

Corporate Finance – Dell Computers to John Deere Farming Equipment

US companies spend over $$827 billion each year leasing tools like software, computers, and equipment. Over the next few years the existing players in this space will need to react to crowdfunding. They can either engage in this new market or ignore crowdfunding at their own peril. Crowdfunding can help large finance organizations tailor new lease products for small businesses that were not possible before. They can deliver lower cost credit products to these businesses that may be paying 25-35% APR now.

In the large equipment space, crowdfunding platforms are poised to step into the arena to allow farmers to finance crops and equipment by other farmers, their friends, and even the consumers. Crowdfunding platforms will launch to support Main Street businesses by playing the role that used to be filled by a community bank. One of the biggest beneficiaries of this move will be local and state Chambers of Commerce because they will play a vital role in community connecting members to this new form of finance.

View:

• 10 bold predictions for crowdfunding 2014

• 13 Experts and 13 Trends that will dominate crowdfunding in 2014

• 2014 predictions that will solidify crowdfinances place in wall street history

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The National Crowdfunding Association of Canada (NCFA Canada) is a cross-Canada crowdfunding hub providing education, advocacy and networking opportunities in the rapidly evolving crowdfunding industry. NCFA Canada is a community-based, membership-driven entity that was formed at the grass roots level to fill a national need in the market place. Join our growing network of industry stakeholders, fundraisers and investors. Increase your organization’s profile and gain access to a dynamic group of industry front runners. Learn more About Usor contact us at casano@ncfacanada.org.