Crowdfunding is in trouble — and the game industry can save it

Crowdfunding isn’t fatigued — it’s growing up. For years platforms like Kickstarter have made it possible for projects to be funded directly by friends, fans, and other communities. In return those backers often received rewards, a token that symbolizes their generosity and belief in the project. The backers of crowdfunded projects also assume a lot of risk, sometimes losing all their money in exchange for nothing if a successful crowdfunding campaign project is later cancelled. But even as some crowdfunded projects have gone on to become hugely successful products, would-be future backers are starting to realize that their early contributions could be investments.

Imagine if you could pool all the potential money that could be raised through crowdfunding. It’s more or less a finite resource because, understandably, most folks will only ever give so much of their own money away. So as the number of crowdfunded projects pile on, this pool slowly begins to drain. The problem with crowdfunding is a sustainability problem.