Definition of ‘Crowdfunding': The use of small amounts of capital from a large number of individuals to finance a new business venture. Crowdfunding makes use of the easy accessibility of vast networks of friends, family and colleagues through social media websites like Facebook, Twitter and LinkedIn to get the word out about a new business and attract investors. Crowdfunding has the potential to increase entrepreneurship by expanding the pool of investors from whom funds can be raised beyond the traditional circle of owners, relatives and venture capitalists.
In the United States, crowdfunding is restricted by regulations on who is allowed to fund a new business and how much they are allowed to contribute. Similar to the restrictions on hedge fund investing, these regulations are supposed to protect unsophisticated and/or non-wealthy investors from putting too much of their savings at risk. Because so many new businesses fail, their investors face a high risk of losing their principal.-Investopedia
One of the exciting things to develop last summer was the advent of crowdfunded security. It is a concept that I wanted to share here on the blog that is really cool and cutting edge. It is a new way of doing business and I wanted to introduce the concept. Who knows, maybe someone will take the ball and run with this.
So here is the concept–create a crowd funding website called Securityfunfr.com or similar, that is completely dedicated to helping countries, states, cities, towns, communities and even individuals in starting crowd funding campaigns for their security. The model is already out there with such places as Idiegogo, Kickstarter, or Crowdtilt.
The idea for this came from a Crowdtilt campaign that was done in Oakland, California by a community in need of security services. Their neighborhood was constantly dealing with criminals, and the police were stretched too thin because of budgetary constraints to deal with that crime. So a member of the neighborhood started a campaign to raise money to contract the services of a local security company.
What happened next is amazing. They were able to raise all of the money needed to fund their own security, and in a very short time. Folks from all over the country could contribute funds to this campaign–and they did.
Now what makes Securityfundr an interesting concept is that it would be a ‘security specific’ niche crowdfunding site. A place to go, to specifically raise funds for whatever security is required. I envision something that a small village in Somalia could take part in, or some town Idaho could get into, or what some female jogger that runs in Central Park, NY could tap into–all to raise money for their security.
You could also raise money to secure websites and protect against hackers. The cyber element of securityfundr could be big, just because the ferocity of attacks that can hack places like Target, could easily be turned on small mom and pop websites–and they do. But small businesses and individuals are limited in their ability to protect their websites, all by how much money they have. Enter crowdfunding and the potential of a site like securityfundr….
I would also create a portal for security companies to advertise their wares on the site. They could receive alerts through the website, for when a funding campaign is started within their area. A company could sign up, and get alerts for specific types of security work, within a certain distance. The website would have a highly secure and encrypted online interface and mobile interface. Each company would be voted on and rated by the public, kind of like what Yelp or Amazon does, all so folks can voice their opinions on the quality of companies and their services. Like I said before, the models are there, and all it takes is to make a snowmobile out of all of them for the purpose of Securityfundr.
Below I have posted all of the pertinent stories related to the crowdfunded security. If you know of others, by all means let me know and share them in the comments. As to the potential of such a concept? Who knows, maybe a crowdfunding campaign could be started to fund securityfundr? lol –Matt
Oakland Neighbors Crowdfunding Private Security
BY Sam Roudman
Friday, October 4 2013
Oakland California’s Rockridge neighborhood has generally been better known for its fresh pasta and pricey Craftsman homes than for brazen daylight robberies. But that changed last month when three men held up a line of drivers waiting at the Rockridge BART station to pick up passengers in order to use the carpool lane on their morning commute.
“The casual carpool line is sort of a sacred thing,” says Rockridge resident Steve, Kirsh, “they robbed 20 people and they kind of freaked out the community.”
What’s a violated yet technologically savvy community to do? In Rockridge, the answer has been to crowdfund private security services, with the aim of compensating for an understaffed police department in the city with the highest robbery rate in America. In the last few weeks three separate campaigns have been started on Crowdtilt in order to fund four months of private security patrols in three different section of Rockridge. Near $35,000 have been raised so far, and two of the three projects have raised enough funds to ensure they will move forward.
The campaigns illustrate the power of crowdfunding tools to propel civic action, but they also point to the potential of crowdfunding to increase urban inequality in the name of a civic virtue like neighborhood safety.