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GROUND CLUTTER Ralph Hood Member, Alabama Aviation Hall of Fame 38 airportbusiness February/March 2016 A s one source defines it, "Crowdfunding is the pro- cess of raising money to fund what is typically a project or business venture through many donors using an online platform, such as Kickstarter, Indiegogo and Crowdfunder." Crowdfunding (hereinafter called CF) is one of those brand-new movements that took off like a rocket and has grown so fast that the guvmint had to come up with rules for it. I love it when that happens. Remember when GPS got so popular with pilots that the guvmint had to recognize and regulate it? Many of us were happily flying by GPS long before it was guvmint regulated. CF is simply a "keep-it-simple-stupid" way to raise investment money for a start- up or other small business that does not require the time, money, and effort of jump- ing through the hoops of getting listed on a stock exchange. Basically, you put the info out on the Internet and — hopefully — many people send money to invest in your project. In many cases it could be cheaper, quicker, and simpler. With that in mind, you know CF is going to grow faster than kudzu in the South. We old aviation folks remember airplanes that never made it to market because of lack of funding. One was the Burns, which I saw under construction in Mississippi in the 1970s. I felt sorry for Cessna and Piper because the Burns was going to be stiff competition. You never heard of the Burns? That makes sense, because the one I saw was probably the only one that ever existed. The problem — I heard — was a lack of funds. CF might have saved the Burns, and most of you can remember other projects that died on the vine. CF could be more relevant to aviation today, because of the LSA class of airplanes and the wide usage of composites, both of which lower the cost of getting into business on a small scale. CF does involve guvmint rules (they have been written, but won't go into effect until May of this year). They seem fairly clear cut, but must be followed. That's probably a good thing. Think of what a conman— or even an overzealous and overconfident person like Jim Bede — could do if crowdfunding had no rules. The forthcoming rules on CF are detailed and strict. I've read them but will not try to explain any of them. You can find them in great detail from many sources on Google. Just enter crowdfunding and/or crowdfund- ing rules. (It might be smart to read up on CF scams, while you're at it). Could airports use crowdfunding? Probably that could be worked out for some projects. More importantly, FBOs, mainte- nance shops, flight schools, charter com- panies, avionics shops, and a jillion other airport businesses can use crowdfunding and I'd bet they will. BTW, Googling CF will astound you. There are enough references to convince anyone that CF is growing even faster than the aforementioned kudzu. As Woody Guthrie sang in his old song, "You Better Get Ready." Crowdfunding Not For Airports? Crowd funding is the KISS method of raising investment money for a startup or other small business. But can it work for airports too? LEKTRO 1-800-535-8767 1-503-861-2288 sales@lektro.com Models Ranging 15,000 to 210,000 lbs. The Ultimate Aircraft Tug www. .com LEKTRO Easy to Use Simple to Maintain Electric Towbarless Rugged Universal Certified Since 1945 www.aviationpros.com/10017532 Crowdfunding could be more relevant to aviation today, because of the LSA class of airplanes and the wide usage of composites, both of which lower the cost of getting into business on a small scale.