Ice Bucket Challenge Demonstrates Strength Of Peer-To-Peer Economy
How do the ALS Ice bucket Challenge and P2P Lending fit together? Well, they both owe their success to the peer-to-peer economy, which has made its impact known, from Airbnb to lending money through online platforms.
The newest craze of throwing ice cold water over yourself and posting it on social media has been a phenomenal fundraising hit. First it was the ‘no make up selfie’ which raised approximately £8 million for Cancer Research and now the ALS challenge, which has hit around $100 million, as reported in The Independent. As John Bore, from Georgia Tech’s Institute for Leadership and Entrepreneurship stated, “while the Ice Bucket Challenge itself will come and go, peer-to-peer fundraising and activism will stick around”. And there is the message in a nutshell.
Crowdfunding is not new, but its impact has been keenly felt in the last few months, a single potato salad raised $55,492 and whilst it was not a charity cause it was a form of activism and fundraising. Helping others by contributing small amounts of money has fueled many projects, however it is the P2P finance element that I am interested in and which has seen huge development in the last few years. Whilst it was a non-existent sector five years ago, it is now expected to lend over $1 billion this year and London is a location at the forefront of alternative finance. The possibilities of how crowdfunding and alternative finance will grow over the next ten years is endless, innovation is cropping up left right and centre.
Whilst the Ice Bucket Challenge might be forgotten in a few months, its undoubted success demonstrates the power of the peer-to-peer economy that we now live in. The concept of how to raise money and fund new projects is being shaken up, traditional forms – such as the banks, are being pushed aside in favour of online platforms, who are ready to help out the stranger on the street.
Interested in how P2P actually works and how you can maximise on its opportunities from a lending perspective? Join us on 15th October 2014 in London for the Peer to Peer Lending and Investment Briefing, where three of the top UK online platforms will be speaking. Learn from their expert knowledge on how you can move forward in this innovative financial sector. Download the brochure here.