The times they are a-changin’.
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On the 10th day of #techmas @badassebs sent to me, 10 Sites for Crowdfunding
Crowdfunding is a peer to peer funding model. I do not believe or support simple crowdfunding… While I can see the benefits of crowdfunding for well thought out businesses, concepts and ideas much too often many see it as a quick road to the end result. there are several version of what is today defined as crowdfunding models.
- Donation Based Crowdfunding (Toms shoes)
- Lending or Debt Based Crowdfunding (like Kiva) – The entrepreneur or company borrows money and must repay it (typically, with interest).
- Reward Based Crowdfunding (Kickstarter)
- Equity Based Crowdfunding (Earlyshares) Equity crowdfunding – Investors receive equity in the company or entrepreneur that is raising funds. The new equity based models are meant to go around SEC regulations of $250.000 minimum for investment.
- Property crowdfunding – Investors receive interest in the property from an owner who is raising funds.
- Other crowdfunding – There are a number of other schemes in use which are generally unique to particular services, e.g., perks, publication, or rewards. eg. Pretail – special pricing offers before production for the product being offered
Typically these are run by platforms that take a small percentage of teh money generated. Each platform operates under differing terms and commisions so make sure you check –
- All or Nothing (AoN) Goal must be met or you get nothing (less commissions)
- Keep it All (KiA) – what ever is collected is handed over (less commissions)
- Bounty – money alotted after fullfillment (less commissions)
I recently cam across a unique service targeting creative and playing on the age old tradition of Patronage. It is a continuous funding model as opposed to a one-time donation.
“These tend to apply to, but are not limited to, art projects such as music, YouTube videos, podcasts, web-comics, etc. — anyone who makes content on a regular basis. They differ mainly in the frequency in which payments are charged to the funders. “
The first Crowdfunding plaform is the continuos funding platform
1 – Patreon was created to enable fans to support and engage with the artists and creators they love. Empowering a new generation of creators, Patreon is bringing patronage back to the 21st century. http://www.patreon.com/
Other services are
2- PledgeMusic is a direct-to-fan music platform, which brings artists and fans together to share in the experience of music as it happens .http://www.pledgemusic.com/
3- Bolstr great for bsuiensses. www.bolstr.com
4 CauseVox: Crowdfunding & Peer-to-Peer fundraising campaign for nonprofits. www.CauseVox.com
5- Crowdfunder is focused in Connecting entrepreneurs with investors around the world to help fund their business and fuel economic growth. They played a significant role in JOBS Act legislation, and are a significant part of the revolution to bring investing online www.crowdfunder.com
6- HandUp is crowdfunding to help the homeless. 100% of donations reach members.
Adding a tip to supprt HandUp’s ooperations is optional (but very appreciated)
Members redeem donations via our trusted network of community partners.
Our partners are local social service organizations that work with our members to set up a profile and make purchases with funds received. https://handup.us/howitworks
7- Fundable “Startups can offer potential backers Rewards or Equity in exchange for funding (but not both simultaneously). Rewards are items of value, such as a pre-order of a new product or services the startup can render in exchange for support. Equity is a share of stock in the company offered to a Backer in exchange for capital. A successful Rewards raise can be a great foundation of support for a subsequent Equity raise.”http://www.fundable.com/faq/
8- https://www.inkshares.com/ Crowdfunded publishing combines the strengths of traditional publishing – expertise, distribution, economies of scale – with the power of communities to select and support great writing.https://www.inkshares.com/
9 – real estate www.patchofland.com
Patch of Land is crowdfunding asset-backed residential and commercial real estate debt using its proprietary technology and processes. Patch of Land creates efficiencies in the real estate debt market, and provides access to these investment opportunities through a peer-to-peer crowdlending marketplace.
I have not tested any of these many have been on my radar, some are new. I look at teh suport the sevice offers as well as the curation of the projects and teh transparency in following up on offers. I have considered leveraging teh power of teh crowd and so have also looked at self hosting or DIY methods and so in this category are two services. Teh first was recommended by the cofounder of Rockethub (another crowdfunding platform)
- 10 A – DIY crowdfunding www.crowdtilt.com is one of teh most flexible latforms allowing you to shape teh campaign you need read and explore carefully you can Collect Money which is Free, Fundraise or pretails/sell at 2.5%. Moreso it allows you to host on your site with Tilt Open or use their API.
- 10 B – CrowdfundingBank is one of the original platforms I discovered on the peer to peer sitess. Their site offers a wealth of info on the topic of crowdfunding. Their platform offers “crowdsourcing with crowdfunding”.
In other words we are the combination of a startup accelerator with a crowdfunding platform. Open to new members and transparent in terms of operations, we are focused on helping projects to succeed.
They have a video course on the topic that is helpful before embarking on a crowdfunding project Whether you choose to DIY or use a plaform the general process involves:-
- Creating a web presence outlining your project or proposal, specifying requests and any offers or enticements for backers.
- Setting up an account with payment processor such as PayPal or Amazon.
- Promoting to potential backers via social hubs like Facebook, Twitter and LinkedIn.
- Tracking progress, making campaign adjustments, processing contributions and fulfilling promises if successful.
It should also be noted that apart from crowdfunding . There is bootstrapping – the lean stratup as well as cultural funding now often called peer to peer funding.
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About 12 Days of Techmas Curations– Each year I “gift” technology. This year I’m curating and distributiong via my topics on Scoop it- http://sco.lt/7bQfAX . Each “gift” looks at technology that can be added to the modern business person’s digital toolbox. Check out and Follow my scoops at http://www.scoop.it/u/bonnie-sandy
“What would you do with technology if you could!” explore the concepts online.”
Reflections on Kwanzaa (2012)
- Umoja – Unity is a doing word – Next Year I’m Unifying My Life
- Kujichagulia The Quest to Define Self Must Proceed – Self Determination!
- UJIMA – Be Ye not Unequally Yoked- Collective Work and Responsibility
- Ujamaa – Is it Simply a word You Recite on December 29th each year!
- Nia- PURPOSE Is The REASON For Which YOU WERE created or For Which YOU Exists.
- Kuumba- Seriously Are you Creative- Are We
- Imani –What’s Faith Got To Do with IT
2015 My weekly newletter begins
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