Crowdfunding In Industrialized & Non-Industrialized Markets/Jurisdictions Alike Can Be Made More Effective By Incorporating This Social Phenomenon

Introduction

Venture capital is for all intents and purposes nonexistent in the non-industrialized markets/jurisdictions. Is there a way that folks in the non-industrialized markets/jurisdictions can raise the equivalent of venture capital funding? The Exceptional Insights Group seems to think so and the following is a summary of their “toastr” methodology.

Scarcity of savings equals scarcity of capital

In the non-industrialized world capital is scarce because savings are scarce. Average incomes are small relative to those in industrialized markets/jurisdictions. There’s not much in the way of a formal financial system in many of these markets/jurisdictions as well. So for the average individual who needs capital there isn’t much in the way of options.

Lack of familiarity and bias as contributing factors

In many non-industrialized markets/jurisdictions individuals may appear reluctant to support other individuals with whom they’re not familiar. There’s also the issue of bias or prejudice and how it factors into an individual’s decision making process. The group believes these are important considerations which also limit the effectiveness of crowd funding in a more general sense.

Generosity and the social treats

This contrast with how willing individuals are to treat each other to social drinks. Individuals seem more than willing to treat complete strangers to a social drink, be it coffee or a beer. The group decided to investigate whether a crowd funding process could be made more effective by incorporating this social phenomenon into a crowd funding methodology.

Conclusion

Preliminary results do seem to support the proposition and the group continues it’s efforts to develop and validate the methodology.