Crowd Funding – Crowd Funding Platforms

April 16, 2018 7:33 pm Published by Leave your thoughts

“Crowdfunding is a way of raising finance by asking a large number of people each for a small amount of money. Traditionally, financing a business, project or venture involved asking a few people for large sums of money. Crowdfunding switches this idea around, using the internet to talk to thousands – if not millions – of potential funders. Typically, those seeking funds will set up a profile of their project on a website such as those run by our members. They can then use social media, alongside traditional networks of friends, family and work acquaintances, to raise money. Below is a brief description of each of the different type of crowdfunding.”
There are a couple of types of crowdfunding that I would like to look at. These being ALL OR NOTHING and FLEXIBLE FUNDING.
    • ALL OR NOTHING – basically, if you meet your goal – you get it all.. if you don’t, well you get nothing.
    • FLEXIBLE funding is different, here you get to keep the investor money even if you do not reach your goal.
I will now explain 3 different crowdfunding sites: Kickstarter, Indigogo and Crowdrise. For each, I will give a summary, it’s position within the market and also a basic SWOT analysis of each.
First up – Kickstarter …
 

 

1) Kickstarter:

 

Summary:
“Kickstarter helps artists, musicians, filmmakers, designers, and other creators find the
resources and support they need to make their ideas a reality. To date, tens of
thousands of creative projects — big and small — have come to life with the support of
the Kickstarter community. “
Positioning:
Kickstarter is the largest and most popular of the internet-based crowd funding platforms aimed at helping creators and artists bring their projects to life. They position themselves as a community of creators. Recently reincorporated as a Benefit Corporation requiring them legally to pursue a “positive impact on society” thus pledging themselves to being a helpful vehicle for creators and artists. Projects are required to create something and be shared with the world. In return for backing a
project, donors receive some sort of reward based on a donation tier system created by
the project creator.
Primary Audience:
Creators and Artists. And the people who love them (or at least creations and art). Their platform is geared towards assisting visionaries, artists, and creators get their projects off the ground.

 

SWOT
    • Strengths: Reputation, brand: fun, minimalist, very active, reward system, simple payment, easy to understand, timelines, all or nothing creates security for investors,
    • Weaknesses: prohibits charitable causes, 60 day limit, poor mobile experience,
    • Opportunities: allow for non-profits, extended duration, poor mobile experience,
    • Threats: New competitors entering the market, donors looking for opportunities for tax deductions, competitors have less strict requirements and lower barriers to entry and or usage.

 

 

 

 

 

 

 

 






2) INDIGOGO

 

Summary:
“Indiegogo is a way for people all over the world to join forces to make ideas happen. Since 2008, millions of contributors have empowered hundreds of thousands of inventors, musicians, do-gooders, filmmakers—and other game-changers—to bring big dreams to life. Indiegogo is democratizing the way ideas get funded and realized across the globe. We have a simple mission: to empower everyone to change the world, one idea at a time. We provide the tools to help campaigns—large and mainstream, or small and personal—boost the awareness and funds to get there.”

 

Positioning:
Indiegogo positions themselves as “democratizing” the process of bringing ideas to life. It offers individuals the opportunity to have creative projects and charitable endeavors funded by the public. Their branding and marketing strategy is focused on a message of empowering people to create the world they would like to create — you can do this by fundraising for your idea/project or by donating to someone’s campaign. No project is too big or too small.

 

Key Features and Differences:
    • Allows for flexible funding (fundraisers can keep funds even if goal is not met)
    • Allows for both for-profit and non-profit fundraising
SWOT:
    • Strengths: allows for flexible funding, permits charitable causes, wide variety of projects, 2 step payment process, viewable list of backers, easy to use, analytics and metrics which are simple to use.
    • Weaknesses: Reputation (getting better though), text heavy in some areas, viewable list of backers, quality of projects are mixed, 
    • Opportunities: Improve sharing capabilities and support, simplify update section
    • Threats: Some bad press compared to competitors, brand attempts to appeal to all, competitors have claimed key niche areas within crowdfunding.

 

 

 



3) Crowdrise: 

 

Summary “CrowdRise is the most innovative, modern crowdfunding platform for charitable causes. CrowdRise’s core principles are that giving back should be fun, and that people have unprecedented power to leverage their personal capacity for good. CrowdRise’s custom-built platform and game theory, as well as the company’s proven record of designing creative crowdfunding strategies, has positioned itself to be the dominant brand in social fundraising.”
Positioning: 
Crowdrise is a playful platform dedicated to helping individuals and non-profits raise money for their charitable causes. They do not take themselves too seriously. Or seriously at all — as evidenced by copy in their FAQ, and even their slogan, “If you don’t give back, no one will like you.” They position themselves as a platform that makes giving back and doing good fun and easy. The platform allows for fundraising pages as well as the creation of fundraising events that allow for multiple participants to create their individual fundraising page to donate to the event’s cause.
Key Features and differences:
    • No goal requirements,
    • Events creation
    • Charitable causes only
SWOT:
    • Strengths: no goal or deadline requirements, strong brand message, simple process, created by Ed Norton, easy to use, low transaction fee.
    • Weaknesses: all for nothing, if doesn’t meet goal – they get nothing, no updates section, no individual rewards, use of humour throughout (or is this a strength), minimal use for storytelling, perks take a long time to earn. 
    • Opportunities: improve search filters and methods of searching, understanding for donors of how investments will be used, 
    • Threats: competitors are better (or seem better) at: variety of ways in which to give back, better connect with stories. 

 

 

 

 

 

Some tips (See https://stephenfollows.com/film-crowdfunding-tips/)
    1. Run a short campaign (unless you’re asking for over $100,000)
    1. Have a campaign video (that’s 2 – 5 minutes long)
    1. Spend time learning the crowdfunding platform you’re using
    1. Offer more rewards
    1. Tell us more about your campaign

 

 

 

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This post was written by noxford

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