Nowadays, crowdfunding is one of the more popular ways to raise money. A community of backers or ‘the crowd’ contribute small amounts to help fund the development of an idea or project. According to CrowdfundCampus, crowdfunding equity surpassed that of venture capital funding for the first time in 2016. By 2025 global investment from crowdfunding is expected to reach $93 billion.
To say that crowdfunding is growing would be an understatement, and particular niches are expected to benefit the most. One such niche is education.
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Educational platforms, in particular edtech, are seeing ideas come to life as a result of crowdfunding. Crowdfunding platforms such as Kickstarter and Indiegogo are the most popular, and boast the greatest number of available backers. The success of projects on these platforms is testament to not only the capabilities of crowdfunding, but also how it will continue to reshape the US edtech landscape. The benefits associated with crowdfunding in edtech include the following:
1. New Learning Methods
Crowdfunding is providing opportunities for new learning methods. Previously, students were confined to learning in the classroom or reading a textbook. Nowadays there are so many online learning courses available from places like Khan Academy or Coursera. These platforms provide a good theoretical foundation for beginner students.
Crowdfunding, however, is providing other options, such as LiveEdu to introduce new learning methods. LiveEdu is a live and video tutorial learning platform where content creators teach learners how to build real products. Their crowdfunding campaign is focused on adding more premium project tutorials to their catalogue. Watching an expert build something using technology is a great way for students to get proper hands-on experience in STEM fields in particular.