Home > business, Crowdfunding, social entrepreneurs > Recent Crowdfunding Success a Good Sign for Social Entrepreneurs

Recent Crowdfunding Success a Good Sign for Social Entrepreneurs

Last week MIBiz reported a somewhat surprising result of the MEDC’s grant-matching initiative (Public Places Community Spaces Initiative).  I  wrote about this initiative in a prior post.

The MIBiz article headline:

State-backed crowdfunding initiative hits 97% success rate in first year

This is an amazing success rate by any calculation

As stated by Ebrahim Varachia, president and co-founder of Detroit-based Patronicity

“It is quite rare…[to see crowdfunding initiatives with that level of success]”

What Projects are being funded?

Its worth looking at the type of projects that were successfully pitched to the public and funded, per MIBiz:

“They range from a historic manufacturing building restoration in Calumet and a recreational sports complex in Sparta to an outdoor soccer field a few blocks from the Capitol Building in Lansing and a public art installation in downtown Grand Rapids. They also include a neighborhood opera house in Detroit and a new pavilion along the Kal-Haven trail in Southwest Michigan.”

What is the take away?

Although equity-based crowdfunding still carries with it a lot of open concerns and uncertainty, the latest success of the MEDC’s initiative at a minimum shows that

people are willing to invest in projects that will enhance their local community.

This is what makes local equity-based crowdfunding attractive for social entrepreneurs.

A Social entrepreneur whose business model is rooted in serving some facet of your local community – there is a place for you and your business.

Questions? Comments?

e-mail: Jeshua@dwlawpc.com


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