Crowdfunded StartUps are increasingly becoming one of the most prevalent corporate establishments. In 2012, 472 million StartUpers and 305 million StartUps existed worldwide, while $2.7 billion were crowdsourced to help primarily the aforementioned actors to actualise their entrepreneurial dreams.
It is therefore evident that actors aspiring to enter the corporate world often use alternative sources of funding and by extension overpass traditional funding agents. This turn poses a symbolic as well as a real challenge to the status-quo, and thus these actors could be considered as the new social movement of the corporate domain.
There are various reasons to adopt such a characterisation when referring to Crowdfunded StartUps, which become evident when analysing corporate organizations in a comparative perspective.
To begin with, the tactics that Crowdfunded StartUps use in order to establish their agencies are significantly different than the ones other types of companies adopt: the former collect their required funds from the crowd (either in the form of donations or equity over the firm), while the latter mainly from bank loans. Undoubtedly, this shift has been facilitated, to a great extent, by the developments associated with Web 2.0 technologies. In any case, it is evident that Crowdfunded StartUps overpass highly powerful corporate agents, a fact that underlines their ‘anti-institutional’ nature.
This shift in the adopted tactics has also influenced the demographic profile of the ‘typical’ entrepreneur of Crowdfunded StartUps. This development has occurred because the crowds have empowered non-accredited actors that banks would have never lend to, due to the formers’ inability to provide any kind of securities. These newly empowered entrepreneurs are creative people who do not necessarily hold high levels of capital as entrepreneurs in their traditional sense do.
Furthermore, Crowdfunded StartUps are rather vertically structured and do not exhibit the long-prevailed corporate hierarchies. All members of such companies hold responsibilities of equivalent importance; they are all in charge of leading their respective fields and get leaded when walking uncharted paths. Such forms of corporate organizational structures have started prevailing only recently, and are very much associated with the newly-created business environment. Undoubtedly, this is a revolutionary feature as the long-dominating schema of corporate governance is being challenged.
It is therefore evident that Crowdfunded StartUps are different than their ‘predecessors’ in terms of tactics, demographics, as well as internal structures. This ascribes them a reactionary character and by extension allows for their characterisation as the new social movement of the corporate domain. Corporate power structures are put into siege by Crowdfunded StartUps.
Crowdfunded StartUps are the new social movement of the corporate domain and can therefore become the agents that will facilitate a great transformation of the business environment.
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