October 12, 2010
Donations and tax
Funding by contributions from a large group of people is not new. Donating moneyto charity dates back centuries before Christ. In the Greek culture, it was known as
and in the Roman culture as
.And a government, who asks its citizens to pay tax, is using a crowdfunding modelto finance public goods.
In 1602 the first company to offer shares was the VOC (Dutch East India
Company) through the world’s first stock exchange: the Amsterdam Stock
Exchange. The VOC offered shares to share the financial risk of the dangerous andexpensive journeys to the East. In essence, this is also crowdfunding! The VOCwas able to gather millions of florins through public equity offerings. Currently,the size of the world stock market is around half the size of the world economy!
The oldest share in the world (1606)
Before crowdfunding platforms for creative projects existed, there were alreadyartists who asked their fans for funding of a new music album or tour. One of thepioneers of crowdfunding, using an internet campaign, was the British rock groupMarillion, who gathered $60,000 in 1997 to finance their US tour. In 2003