Crowdfunding: A New Funding Mechanism for Health Researchers

The scientists and researchers are exploring new methods to fund their research in view of diminishing grants and increasing competition. The academicians in health institutes are also under pressure to do research. Recently Crowdfunding has emerged as a new method of funding research in which funds are raised through small contributions of money from many individuals through websites.

This can help boost research and support advancement of science. Crowdfunding allows researchers to bypass the time and efforts required to go through a lengthy application process. It promotes ownership among stakeholders, empowering them to drive research agenda to their benefit. The flipside is that the crowd in crowdsourcing may have different research priorities than national priorities.

The two major challenges in this method of funding include reaching a widest possible audience and regulatory/legal issues in the country. It requires a strong online presence. There are dedicated online platforms. Currently there are no clear regulations or law for handling large amounts of money or issuance of securities through crowdfunding. A regulatory framework will help check any money-laundering activity or fraudulent acts in the name of ‘crowdfunding.

The concept of online crowdfunding is fast catching up but there are no examples of big successful campaigns in India. Further research is needed to establish strategies that maximise the likelihood of success of crowdfunding. We need to undertake it with a realistic understanding of what it can and cannot do.