I’ve been bold enough to state in the past that I believe all good ideas will be incubated through crowdfunding in the future. At the time I suggested it would be 2030 before this vision is fully realised, which still seems plausible. The thought process behind my theory is that crowds, ergo the opinion of the market, is deemed more trustworthy than the voice of a few opinionated industry leaders, in other words, pluralism is overtaking individualism. So I feel there will be a time in the near future where ideas or new brands won’t be trusted if they can’t show they’ve been validated by the crowd.

I’m not the only one who believes this paradigm shift will be absolute. In their recently-published book, called New Power, authors Henry Timms and Jeremy Heimans argue that we’re shunning old 20th Century values in favour of new power values of disintermediation, leader-less movements and crowdsourced ideas. In this world our voices are heard through online petitions, our banks are crowdsourced and our beer is owned by the people. It also has its dark side, leading to populist politics that can be open to manipulation, such as Donald Trump, Brexit and the Cambridge Analytica scandal.

So how will this affect the startup and funding scenes, and will this help to drive the industry forward? Or will a distrust of experts lead to a world where we’re forced to live with maniacal leaders and inanimate objects called Something McSomethingface?

Perhaps more importantly, how can your idea gain more traction by embracing these new powers?

The implications

Timms and Heimans argue that new power is overtaking old systems because the digital world allows for instant, positive feedback loops. What they mean by this is that ideas and content can instantly gather momentum online through a continual appraisal process of likes, shares and upvotes, which gives the idea-generator or content creator instant feedback on what they create. And the crowd that’s participating gets taken along on a journey by being involved. Applying that logic to crowdfunding, the reason why it’s growing faster than other digital sales channels is due to the fact it incorporates a number of engagement mechanisms, and the nature of crowdfunding means that people are backing a project emotionally (rather than rationally), so they’re getting involved in the first place because they want that buzz of the feedback loop.

So as new power continues to proliferate, more companies will turn to crowdfunding as a means to engage a tribe early and validate their idea at the same time. The funding aspect just enables everything to happen and confirms the commitment of that tribe. And this process will, in turn, lead the wider crowd to trust that idea or brand. We can already see this at work in brands like Monzo and Revolut, which are convincing people in the hundreds of thousands to quit their banks (which have had centuries of monopolisation in the old system).

The old guard

I won’t name any names, but a well-known crowdfunding advisor - who is actually a highly vocal critic of crowdfunding - once told me, ‘What you do and the way it’s portrayed is exactly what I’m dead against...it does the reputation of a poorly regarded sector no good.’ To clarify, my agency underwrites the costs of a marketing and PR campaign for companies that are crowdfunding so that they generate interest from their market at a time when they need it most. It’s a service startups and growth companies find incredibly valuable since it gives them exposure normally reserved for medium to large companies with big budgets. We open up crowdfunding to companies that previously wouldn’t have been able to participate, and in the process we bring great new ideas to life that would otherwise never have seen the light of day. But he feels threatened, because there’s no role for a gatekeeper in this scenario. The people he is dead against curate great ideas and connect tribes with companies they want to support. How could anyone truly be dead against that?

Here’s the thing, people with a gatekeeper mentality like this won’t survive in the new power paradigm. They’re the Harvey Weinstein, Toys R’ Us and Lehman Brothers of the world. If you want not just to continue trading, but actually thrive in this world, I highly recommend you shift your mindset: