Crowdfunding has doubtlessly driven the dreams of many people. However, this method of financing has its own detractors. Which have no qualms in saying openly: “I hate crowdfunding.” Taking this into account, where does all this rejection come from? We collected information about it and today we’ll address the subject.

“I hate crowdfunding”: But why?

There’s no denying that crowdfunding changed world economy as we know it. As early as the 2000s, microfinance was already making its mark. But while some saw it as the method of financing the future, other people wrinkled their faces. It wasn’t obvious to the naked eye but during the course of the years, crowdfunding began to generate various criticisms.

Just to give an example, several criticisms arose as a result of the approval of the JOBS Act in 2012 within the United States. Again, many experts in the business world showed their dissatisfaction with the law. Ryan Caldbeck, CEO of CircleUp, wrote an article in Forbes on the subject in 2013. There, he said that the main criticisms of crowdfunding came from lack of confidentiality and the indiscrimination of investors.

crowdfunding private financing
Some companies prefer to obtain money by conventional methods. Since they consider that crowdfunding viralizes start-ups and emerging business to excess. Source: SME BANK

From here, a large number of people started to share their experiences and points of view. One was in an article by columnist and writer Robrt Pela for Phoenix New Times in 2015. According to him, crowdfunding lends itself to financing personal projects of people who work and earn a salary. Or people who’ll definitely do anything to avoid having to work.

Another interesting criticism is that of Monica Davidson, director of the business-to-business service Creative Plus Business. Who wrote an article on LinkedIn in 2017 where she explains that crowdfunding is useful but has disadvantages. Among them, it can compromise the emotional well-being of an individual. And that by involving a strong promotion plan, it’s possible that a campaign’s creator is exposed to negative feedback.

Some other reasons

So far we have some observations and criticisms towards crowdfunding. An article by BroBible also makes an observation similar to that of Robrt Pela. They warn that crowdfunding is becoming a tool for people who don’t wish to work to finance their “pet projects”. Something of which incidentally, we had spoken in a last entry.

It also happens that the rejection of crowdfunding occurs due to political reasons. As defined by a WDN article written by Phil Elmore in 2016. Who said that crowdfunding is hated and rejected by some leftist political sectors. Which usually criticize it especially when it’s used by people to pay for services that are legally free. As for example, a medical treatment.

the daily dot left hates crowdfunding
A Facebook post of the North American newspaper The Daily Dot, which shows a press release from its website where they criticize that some rape victims have to use crowdfunding to pay for medical treatments. Source: WND

To finish, we’ll show an analysis done by crowdfunding magazine Crowdfunders. In 2015, they published an article with several reasons why people hate crowdfunding. One of them is that some don’t believe in this method of financing. Since they could consider it an unsecured financing method and without any guarantee.

The article explains that some crowdfunding detractors consider that it encourages begging. And where there could be smart people saving money to finance their projects, there are people who instead “beg for money” shamelessly and even pathetically. But in turn clarifies that this is a misperception because there are successful and serious crowdfunding campaigns that demonstrate otherwise.

Millenials Crowdfunding Abuse
Brobible warns in an article about people who abuse crowdfunding. Telling how a group of young men sent them an e-mail to ask them to give money to their campaign to reunite again and have fun together.

This method of financing can undoubtedly bother some people. Enough to make them scream “I hate crowdfunding!” Regardless of the reasons, we can say with certainty that crowdfunding doesn’t have the mission to finance insignificant causes. It’s more thinking for people who know how to approach the audience with a big and sincere purpose.

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Related: Why Is Journalism So Unpopular In Crowdfunding?

Do you think the hate for crowdfunding is justified?