Guest post by Andrew Thompson | Jan 6, 2015

Crowdsourcing has already helped thousands of upstarts succeed, whether it's from creating new computer games or opening an incredible unique type of business. While the idea of seeking $5 from people all over the world is usually associated with fledgling companies, a more traditional form of industry has sought help from it last year.

The world’s mining industry hasn’t been on a great track in recent years, following a slump due to fundamental factors that negatively affect the prices of precious metals. BullionVault reported that metal prices have lost about 1/3 of their value compared to their bullish prices from 2010 to 2012. Without much support from investors these days, the mining industry has attempted to revive its operations through crowdfunding.

Compared to other businesses, the mining industry is a difficult one to operate. Its unsafe working conditions and environmental impact (chemicals are used in extracting ore) make getting a license from governments around the world difficult. Currently, most mining companies don’t have the technology to make its operations safer for the workers and environment. Pair those issues with factors that weaken the prices of precious metals and you will clearly see the reason why investors aren’t backing miners as of the moment.

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Thankfully, crowdfunding, apart from its ability to seek help from interested parties around the world, has the capability to change the image of the business. Most crowdfunding sites have rules that parties seeking help from people all over the world should fully disclose their working operations financial statements to their backers. With such requirements, people will be able to see which miners have the potential to be successful in the long run.

Several companies have already benefitted from crowdfunding. KlondikeStrike Canada is the world’s first mining crowdfunding platform that was launched in order to help private individuals invest in the mining sector. One company that was able to benefit greatly from crowdfunding is Planetary Resources, garnering over $1 million in just 30 days. Planetary Resources aims to mine Asteroids for precious metals and other resources in order to increase humanity's footprint in space.

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. Learn more About Us | Crowdfunding | Support