METRONOME: find a Crowd to CrowdFund your project

I am sure you are all aware of Crowdfunding models, when it comes to raising money for a project. A relatively unsure trend at the start, has in the course of these last few years, built up speed, and now is considered the main option for independent producers or individuals, to take their project or product to the market, sidestepping more conventional sources of money raising, like going to the bank, or seeking a venture capital. It capitalizes on two factors : (a) the all-time successful concept of raising money from close family and friends, and (b) the willingness of otherwise unreachable (to you) people, to become customers and purchase your project or product if available. Both were facilitated by the advent of numerous Crowdfunding sites.

What is Crowdfunding ?

Crowdfunding, as its name suggests, is a funding method where common people like you and me, henceforth the crowd, fund your personal or business project with their own money. There’s a term that we commonly use to describe this money-giving action; it’s called a donation. The main difference between Crowdfunding and donation is that Crowdfunding is tied to the American JOBS act that allows online sales of small stock to a huge pool of investors, although the act has not been passed yet. Nonetheless, you could still embrace the Crowdfunding method to raise your project funds, as long as you don’t sell any kind of stock. Different Crowdfunding sites could have different a purpose or approach , but overall the concept is simple – you post your project to a large group of site users, or "potential investors", and they will fund your project with money if they are interested in the project. you can start a Crowdfunding exercise for free as you will only be charged when your project has raised some funs or the full amount. There’s nothing to lose and this is great for publicity. [1]

To put it in context : Crowdfunding (alternately crowd financing, equity Crowdfunding, crowd-sourced fundraising) is the collective effort of individuals who network and pool their money, usually via the Internet, to support efforts initiated by other people or organizations. Crowdfunding is used in support of a wide variety of activities, including disaster relief, citizen journalism, support of artists by fans, political campaigns, startup company funding, motion picture promotion, free software development, inventions development, scientific research, and civic projects. [2]

[Fig.]

Sep.2012, Money from the Crowd,

http://seedingfactory.com/2012/09/infographics-money-from-the-crowd/#prettyPhoto

Crowdfunding alternatives / sites

I have recently come across a Crowdfunding platform operating in Australia, named Pozible. Pozible is a Crowdfunding platform and community-building tool for creative projects and ideas. It was developed to help people raise funds, realise their aspirations and make great things possible. Crowdfunding with Pozible is a way for motivated makers to access funding beyond ‘official’ channels by talking directly to switched-on consumers, fans, peers and like-minded strangers. Whether you’re a part-time photographer, aspiring illustrator, avant-garde kazoo virtuoso or app-developing wizard, you can host your project on Pozible. I liked the concept, the overall look and feel of their site, as well as the fact they were recently reaching out to the Universities R&D (research and development) community.

[Fig.]

The power of Crowds

http://www.behance.net/gallery/Crowdfunding-Infographic/6493021

Like Pozible, there are numerous others, incorporating various features and novelties, that could make them stand out, and reach their audience. Probably the hottest Crowdfunding site on the Internet is Kickstarter, which raised a total of $220 million from 61,000 launched projects so far. Thousands explore its listed projects every second waiting to give away their money to the project they think is most deserving. Kickstarter accepts all major kinds of creative projects but not for causes or awareness campaigns, charity or scholarships, and definitely not for vacations or a new digital camera. The submission process is really intuitive and straightforward, you just need to sign up an account, then fill out your project details. You are encouraged to describe everything in great detail, as there will be crews reviewing your form and determining whether to accept your project or not.

[Fig.]

JUNE 2013 ISSUE OF INC. MAGAZINE

http://www.inc.com/magazine/201306/eric-markowitz/how-to-choose-a-crowdfunder.html

Indiegogo, Bolstr, Fundable ; the list goes on. With the SEC poised to allow projects to offer equity, Crowdfunding has the potential to revolutionize how entrepreneurs raise money. (For now, you have to offer some kind of reward in exchange for donations.) But all sites are not created equal. Some specialize in nonprofits, or in certain types of products; others offer consulting services in addition to sourcing funding. In an increasingly crowded and complicated marketplace, where should you turn to fund your endeavor ? Follow the supplied map on the figure above. [3]

[Fig.]

Want to give crowdfunding a try, but not sure where to start ? ideacrossing.org have put together a quick cheat sheet to help you navigate which crowdfunding site might be best for you.

http://www.ideacrossing.org/blog/index.php/2013/02/should-you-join-the-crowd/

Notable also is GoFundMe, where the fundraisers get their cash as it comes in ; no need to wait to reach a predetermined goal like Kickstarter. The company is filling yet another unexpected niche in the burgeoning crowdfunding industry. Launched in May 2010 and based in San Diego, CA, GoFundMe has quickly become the #1 crowdfunding website in the world for personal causes and life-events. Hundreds of thousands of people have raised over $130M for the things that matter to them most. GoFundMe users can choose to create a) Personal Donation Campaigns, b) Charity Fundraising Campaigns or c) All-or-Nothing Crowdfunding Campaigns.

Since the list of Crowdfunding platforms / sites increases each month, it is rather pointless to list them all here. However at the end of this article, please find locations / other articles that attempt to list or group all these available sites out there.

Start a Crowdfunding site

You can now start your OWN Crowdfunding site. Get a white label crowd funding site set-up and ready to accept payments in two minutes with CrowdfundHQ.

Shaping a new Economy

Crowdfunding is there “to bring your product from fruition to completion”. Crowdfunding has revitalized the Arts at a time when public programs that support it are steadily dying off. Crowdfunding is growing a market for impact investing in social enterprises, marrying the worlds of entrepreneurship and philanthropy, and helping a broader base of investors to back companies for both profits and purpose. Crowdfunding is accelerating angel investing and creating an entirely new market for investment Crowdfunding for businesses. So get involved and join a Crowdfunding community today. You’ll make a difference for a project or business owner, and also help build a new and more collaborative economy. [4]

“This has been an age of angels stepping up to fill the voids left by bank loans and VCs that were decimated by the financial crisis,” said David Drake, a Partner with LDJ Capital in New York. “Angels stepped in to fill the gap and now crowdfunding, which we estimate will hit $6 billion globally in 2013, is the new kid on the block.” [5]

[1] Ref. http://www.hongkiat.com/blog/crowdfunding-sites/

[2] Ref. http://en.wikipedia.org/wiki/Crowdfunding

[3] Ref. http://www.inc.com/magazine/201306/eric-markowitz/how-to-choose-a-crowdfunder.html

[4] Ref. http://www.forbes.com/sites/chancebarnett/2013/05/08/top-10-crowdfunding-sites-for-fundraising/

[5] Ref. http://www.intelligenthq.com/startup/accredited-crowdfunding-platforms-granted-sec-no-action-relief-from-broker-dealer-registration/

Lists of Crowdfunding platforms, available on the Internet :

http://www.hongkiat.com/blog/crowdfunding-sites/

http://www.spectraspeaks.com/2012/12/introduction-to-online-fundraising-crowdfunding-social-media-campaign-tips/

http://www.inc.com/magazine/201306/eric-markowitz/how-to-choose-a-crowdfunder.html

(per funding method) http://www.entrepreneur.com/article/228534

http://www.forbes.com/sites/chancebarnett/2013/05/08/top-10-crowdfunding-sites-for-fundraising/

Global 100 Crowdfunding Index, http://crowdfundingpr.wordpress.com/2013/06/12/crowdfunding-press-center-releases-the-first-global-100-crowdfunding-site-index/