Category Archives: Crowd Funding
Crowd funding: SECP warns of false scheme – The Express Tribune
Crowd funding is not allowed in Pakistan and no company can raise funds through this scheme
ISLAMABAD:The Securities and Exchange Commission of Pakistan (SECP) noticed on Monday that a Facebook page with the title of Innovative Crowd Funding Project Pvt-Ltd Pakistan has appeared, explaining the concept, history and other details of crowd funding investment.
In view of this, the regulatory body warned the public not to be misled by any such false scheme. As per the website, it seems that the company is involved in raising funds through crowd funding, the SECP said a statement.
In this regard, we would like to clarify that no company with the name of Innovative Crowd Funding Project Pvt-Ltd Pakistan is registered and that crowd funding is not allowed in Pakistan and no company can raise funds through this scheme, the statement added.
Published in The Express Tribune, March 28th, 2017.
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Crowd funding: SECP warns of false scheme - The Express Tribune
Arsenal fan plots sensational crowdfunding campaign to BUY the club from owner Stan Kroenke – The Sun
Gooner lookingto raise funds of 904m in order for the club's supporters to take over the running
AN ARSENAL fan is taking matters into his own hands in an attempt to BUY OUT the clubs majority shareholder Stan Kroenke.
Speaking on Reddit, the supporter has proposed a remarkable crowd funding campaign to buy out the Americans shares to hand ownership to followers of the club.
Reuters
Working on a value of 904m, user lifeshard92 explains: We have an estimated number of fans of 27 million worldwide.
Now Im not saying all of them are going to fund this little enterprise.
But thinking of this practically, if one million gave 1,000 less than the cost of a season ticket we would be in the position to buy him out by over 100m, with a bid of 1bn on his valuation.
He added: If we were successful, I think the possibilities of us owning the club are endless.
With 200 then given by these owners, we would be able to fill the kitty up with a 200m transfer budget should we so wish.
Getty Images
PA:Press Association
News Group Newspapers Ltd
Discontent is growing among the Arsenal supporters as pressure grows on the clubs manager Arsene Wenger and the owners.
Many Gooners believe that they are prioritising financial gain over trophies, with only two FA Cup wins being their only successes since 2004.
How to make crowdfunding work for you – Buffalo Business First
Buffalo Business First | How to make crowdfunding work for you Buffalo Business First Crowdfunding is a powerful tool used today by entrepreneurs around the world to get their business started and/or launch a new product. If you are contemplating a new product and/or want to experiment with real-world data and money, crowd funding is a ... |
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How to make crowdfunding work for you - Buffalo Business First
Crowd funding | ASIC’s MoneySmart
Chipping in
Contributing money to a crowd funding project can be a great way of showing your support for a creative, social or business initiative you believe has merit. However, you need to do some research to ensure your money is being used for a legitimate project. Here are some things to consider before you decide to get involved.
Crowd funding is used by artists and entrepreneurs to find money to fund their projects. Money is usually raised through a crowd funding website. The website enables people who are not professional financiers to pool their money towards a project.
Most crowd funding websites will have information on the project's aims and objectives, how it will work and its budget. Crowd source funding websites can be based in Australia or overseas. The projects they fund are usually creative, business or social initiatives with relatively small budgets.
Crowd funding projects are usually promoted using social media and word-of-mouth. Often project sponsors are friends and family, or people easily contacted through existing networks. However, anyone can pledge money to the project via the website and some get world-wide support from complete strangers.
There is no monetary reward for supporting a project and sponsors are often enticed with a small gift such as a signed CD, a free T-shirt or a discount on products in return for their support.
In most cases, only projects that raise enough money can go ahead. Most, but not all sites return funds if the target amount is not reached.
Crowd source funding websites make money through a levy on the total funds received for the campaign. Often the levy is only deducted if the campaign goes ahead.
If you want to participate in crowd source funding you'll need to:
Once the project has reached it's target funding, the money you've pledged will be deducted from your account.
Most crowd funding websites do not have Deductible Gift Recipient (DGR) status so you will not be able to claim a tax deduction for the money you pledge.
However, the project creator may have DGR status. If so, it is up to them to provide you with a tax deductible receipt if you request one.
You cannot claim a tax deduction if you have received a gift, reward or discount.
Raising money for a crowd funding project relies heavily on trust.
Even if there's a small gift involved, the main motivation for sponsoring a project is usually because you have an interest in the project and a desire to see it succeed.
If you've heard about a crowd source funding project that you'd like to support make sure you check the legitimacy of any website or social media page you're directed to. Remember to carefully read the terms and conditions on the crowd funding site before signing up.
You should also try to find out as much information as you can about the project and its owner before you sponsor them. For example:
Don't give your credit card details unless you're comfortable that the website, the project and its owners are legitimate.
Visit our credit card scams page to find out what to do if you think your credit card details have been compromised or you think you've been scammed.
Supporting a project you really believe in can be a rewarding experience but you need to be careful someone isn't taking advantage of your generosity.
Last updated: 07 Aug 2016
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Crowd funding | ASIC's MoneySmart
Crowd Funding
Crowdfunding can be thought of as the support of an organization or an individual through enlisting the attention, trust, cooperation, and ultimately monetary support (thus, the funding part of the term crowdfunding) from people (the crowd part of the term). Individuals or organizations may seek out crowdfunding to support disaster relief efforts or political causes, or artists may ask for support from fans, or the funding may be sought out to help start up a new business. Motives for initiating crowdfunding are endless; individuals can use this tool to raise money for a wedding or to help pay for college. It doesnt matter what the motive is, so long as the individual or organization is able to gain the attention, trust, cooperation, and funding from its target audience.
To start crowdfunding, an organization or individual must have some cause or idea to support. Crowdfunding has been used to support the making of films, to support musicians, and to start up small businesses. Whatever the cause or idea is, it must be communicated to its target audience. This is usually done through the internet, and there are several websites available to manage a crowdfunding effort. Once made aware of the cause or idea, the audience can contribute funds to support it. Obviously, the bigger the audience, the more funding there will be. In addition, the more trust and cooperation that is instilled in the audience, the more funding that will likely result.
One benefit of crowdfunding is that it allows people and organizations to try out new ideas without financial risk. Crowd funding promises nothing in return to its contributors, so the money that is gained from the crowdfunding never has to be repaid.
Another benefit of crowdfunding is that a project or idea can gain support through word of mouth. If a project or idea is perceived to have lots of potential by its initial contributors, the initial contributors may advertise it through word of mouth, thus enlarging the audience and increasing funding.
Crowdfunding is a useful means for soliciting support for a cause. With the advent of the internet, it is easier than ever for individuals or organizations to use crowdfunding. Crowdfunding has enabled people and businesses to accomplish things that they may not have been able to accomplish otherwise. Crowdfunding allows people and organizations the financial freedom to act on good ideas, and without this freedom theres no telling how much the world may have missed out on in terms of music, art, entertainment, and business innovations.
What is Crowdfunding
Most people may not be aware of what crowdfunding is all about and how it can be very significant in the society nowadays. It is important that crowdfunding is definitely made aware to the society nowadays. Here are some of the most important things that you need to know about crowdfunding.
Understanding Crowdfunding
First of all, it is essential to define what crowdfunding is really all about. Crowdfunding is also known as equity crowdfunding, crowd financing or hyper funding. This is actually known as the joint effort of many wiling individuals to network their resources to be able to support different organizations and movements when it comes to their causes. These people usually interact easily through the Internet. A lot of good causes are primarily supported through the use of crowdfunding. Some of the activities that are supported by this competitive effort include political campaigns, relief operations, journalism campaigns and even company assistance. Even scientific research and development can also be able to be supported by crowd financing. Aside from this main definition, crowd financing is also considered as the efforts of the company to sell amounts of their equities to their investors.
Knowing the Latest About CrowdFunding
There are a lot of new things that people should definitely know about crowd funding. Several researches and surveys have found out that crowdfunding can experience a great boost most especially in the next year, primarily in 2013.
A lot of changes have been happening nowadays specially in the entrepreneur and finance industry. This is supported by rapid improvements and technological advancements in the society. The Internet continuously becomes a very powerful tool for communication, marketing and other essential fields in the society. It is seen that the funds that different entrepreneurs , investors and capitalists are willing to spend for crowdfunding increased to up to about 500 billion dollars in the future years. This is a very significant increase as compared to 2011s 1.5 billion dollars. When it comes to 2012, it is said that the funds can reach for up to 3 billion dollars.
These statistics and values definitely show that crowdfunding continues to be improved throughout the years. This means that crowd financing is actually attracting the interest of a lot of companies, entrepreneurs, capitalists, investors, or even small time business men. Crowdfinancing definitely brings a great change to the world of financing.
A Closer Look Into CrowdFunding
With this boost for crowdfunding, a lot of organizations and even small time businesses can definitely be able to get the right support that they need to pursue the operation of their activities. Crowdfunding can definitely be considered as a great hope for the society when it comes to improvement and development.
Crowdfunding simply proves that the power of social interaction and networking through the Internet is definitely getting popular in the society. A lot of people are truly become more convinced and interested to invest a portion of their financial resources to causes and activities which they believe have the potential of great success in the future.
These are some of the most important things that you definitely need to know about Crowdfunding and its latest updates most especially how it would be working in the near future. The society should definitely be made more aware of how crowd financing can definitely be big in the years to come with all the potential that it has. Crowdfunding, with its great impact, can definitely be considered as one of the most changing efforts that can boost the finance industry, and without the people knowing, even the society as a whole.
Benefits
There are several different benefits of crowdfunding. The first benefit is that a person is going to be able to get access to their capital. This is going to be very important because most of the time when a person is first starting up a business, they are only getting money from their investors so they are not going to be able to get access to their capital. Plus a person is not going to have to worry about accumulating a debt when they are starting up their company since the crowdfunding is going to greatly reward the business owner.
The second benefit of crowdfunding is that the business owner is not going to have to worry about any of the risks that are involved in starting up a business. This is because it is almost impossible to figure out all of the expenses that it is going to be needed to start up the business, or the challenges that the company might face when they are first starting off. This type of funding is going to allow the company to gain a little bit of validation when it comes to becoming the successful business that every company wants to be.
The third benefit of crowdfunding is that is going to be a great marketing tool for a business that is just starting out. This is because it is not going to cost the company any money to use it. This is going to be very important since the company is already going to have a lot of expenses that are going to be involved in starting up a business. Most of the time, the business owner is going to be using a variety of different social media websites to help them to get more traffic to the companys website.
The fourth benefit of crowdfunding is that it is going to give the business owner proof of their concept. This means that the company is going to be able to earn the respect that they are going to need when they are first starting off. Therefore, the company is also going to get a lot of credibility. Once the company has earned the trust of their customers, then it is going to be a lot easier to get more customers to buy some of your products. This is because these customers are going to tell their friends about your products.
The fifth benefit of crowdfunding is that the business owner is going to be able to brainstorm when it comes to crowdsourcing their business. This could be one of the biggest challenges that a company that is just starting up is going to face. This is because the business owner is going to be able to engage with their customers and receive any feedback that these customers might have about the products and services that the company is providing to them. This is going to be very important to the company since they can make any necessary changes to the products.
The sixth benefit of crowdfunding is that it is going to guarantee that the new business is always going to have loyal customers. This is because once a customer is happy with the products or services that they have used, then they are going to be very likely to tell their friends about these products or services. As long as the company is able to keep all of their customers happy, then they are going to come back to the business to buy these products or use the services that the new business is going to be providing them.
The seventh benefit of crowdfunding is that it is a lot easier to use than the more tradition applications when it comes to a company getting any type of funding. It is going to be very important that the company is able to get the necessary funding in order for the business to be successful. This funding is so simple because all that the business owner has to do is to figure out what type of platform that they want to use for their source of funding. The business owner is going to need to make sure that is suits the business.
The eighth benefit of crowdfunding is that it is very affordable. This is because it is not going to cost the business owner any money to use. This means that if the business owner sets a particular goal for how much funding that they are going to need to reach and they are not able to reach this goal, then the business owner is not going to have to worry about getting any penalties for this action. It just means that the money is going to be returned to the contributor and the business owner gets no money.
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Crowd Funding
Crowdfunding – P2P Foundation
Crowdfunding is a means to building financial support for a project or product from diverse sources. [1]. Crowdfunding is a form of Crowdsourcing, applied to finance. Instead of venture capital, institutions, or direct philanthropy, an interest community is called on to support the project in a distributed, generative fashion.
Crowdfunding is generally characterized by [2]:
1. An Invitation to participate in enabling a novel creative project
2. A Campaign to engage a substantial community in the effort
3. A Celebration of accomplishment, usually involving a return of gifts/value to participants
1. From Wikipedia http://en.wikipedia.org/wiki/Crowdfunding
"Crowdfunding describes the collective cooperation, attention and trust by people who network and pool their money together, usually via the Internet, in order to support efforts initiated by other people or organizations."
2. From http://www.chaoticripple.com/2011/crowdfunding-isnt-about-money
"Crowdfunding is a community-engagement process between an individual or organization seeking money to create something new and a crowd of supporters who want to participate in the effort in a meaningful way."
3. From http://www.crowdsourcing.org/community/crowdfunding/7
"Crowdfunding is an approach to raising capital for new projects and businesses by soliciting contributions from a large number of stakeholders following three types of crowdfunding models: (1) Donations, Philanthropy and Sponsorship where there is no expected financial return, (2) Lending and (3) Investment in exchange for equity, profit or revenue sharing."
Three ways organisations or people seem to get funded. |via Quora
Ross Dawson writes:
"There are two types of crowdfunding that are fundamentally different: crowdfunding for equity, which is covered in detail in the following chapter, and crowdfunding in which funders receive no equity. Equity crowdfunding is becoming increasingly viable as models are developed that conform with the current strict securities regulations in developed countries, and legislation appears in some cases to be relaxing. However in most cases references to crowdfunding are to the traditional model in which no equity is granted to those who fund projects." [3]
An alternative to the standard crowdfunding approach is to create your own campaign with various online tools and webspaces, promoting to your target audience with social media and other outreach.
The process involves:
This method is somewhat more involved, and more dependent on your own marketing and networking ability. DIY crowdfunders will want to maintain a compelling and concurrent web presence that offers simple and secure methods for contribution. An example of DIY platform is CrowdFunding Bank, which allows you to do the crowdfunding campaign on your own and directly receive the funding into personal PayPal account.
The advantages are:
"Funders are usually offered incentives, such as a pre-release DVD or CD, a name on credits, or a meeting with the artists. In some cases the crowdfunding process is effectively a pre-sale of products that have not yet been created. More often funders are motivated more by contributing to something worthwhile rather than simply purchasing a product.
...
Beyond the satisfaction of having funded a worthwhile endeavor, many funders look for more tangible outcomes, even if they are just personal evidence of their contributions. For creative projects this will usually include copies of any work produced, often in special editions or received before others. Another significant incentive for funders is public recognition in various formats." [4]
"Most crowdfunding platforms require a pre-specified minimum funding level to be reached before the contributions are made. That funding amount is supposed to be sufficient to allow the project to happen, so people do not pay unless the project is fully funded and can proceed." [5]
'However there are now a wide variety of crowdfunding platforms that not only facilitate the logistics of accepting contributions from existing networks of contacts, but also give access to broader pools of people who are interested in participating in worthy projects. The platforms also allow funders to give feedback and conduct a dialogue with the project originators." [6]
BY BOB GOURLEY:
"Within the span of a three month period (March May 2012), the largest crowdfunding sites including Kickstarter, Indiegogo, Grow VC, and Rockethub doubled their daily traffic and donation volumes. Between 2008 and 2011, Kickstarters issuers raised over $200 million in sales. In 2012, the site raised an additional $145 million. On Indiegogo, another popular crowdfunding site, campaigns raised 20% more money in 2012 than they did in 2011. Substantial growth was also seen in the debt crowdfuding industry. Between 2007 and 2011, the LendingClub (the largest U.S. peer-to-peer lender) facilitated the lending of more than $1 billion dollars. In 2012, the LendingClub grew by an additional $1 billion." (http://www.sys-con.com/node/2518811)
1. Carl Esposti:
"After surveying more than 350 active crowdfunding platforms ... research firm Massolution has identified five major crowdfunding developments for 2013 and beyond.
1. Niche platforms
As crowdfunding platforms try to benefit from market differentiation, niche-, industry-, and sector-specific platforms are emerging.
2. Locavesting
In her 2011 book, Locavesting, business and finance journalist Amy Cortese describes how a revolution in local investing is emerging and that crowfunding is boosting it. This year, we are going to see increased momentum in this revolution because many new crowdfunding platforms will actually specialize in locavesting ... at least four states Louisiana, North Carolina, Georgia and Kansas have taken the initiative to allow crowdfunding for business loans. Crowdfunding platform Rebirth Financial is specializing in locavesting and offers intrastate, lending-based crowdfunding.
3. Enterprise crowdfunding
Large enterprises and associations have begun to look into crowdfunding and how this tool carries new potential for their companies, including raising social profiles, market testing, and spin-ins of entrepreneurial ventures. The perceived benefit is not the additional funding itself, but the democratization of specific decisions that would otherwise be made internally in the company.
4. Crowdfunding economic development
Major development banks and similar institutions including The World Bank and The Inter-American Development Bank are seeking to leverage crowdfunding for economic development. Crowdfundings social profile and its strong connection to micro-finance are the main drivers ... The Multilateral Investment Fund (MIF) of the Inter-American Development Bank is currently exploring the potential of crowdfunding in Latin America, and how crowdfunding can be used to improve small businesses and bring financing to entrepreneurs who have less access to it.
5. LIVE crowdfunding
The final trend that we see emerging in the crowdfunding space are launch-party events at the initiation of campaigns or LIVE crowdfunding expos. Besides creating media attention and offering a great marketing opportunity, LIVE Crowdfunding taps into an investor need that is hard to come by through the web: exclusivity." (http://venturebeat.com/2013/05/22/5-ways-the-booming-crowdsourcing-ecosystem-is-changing-in-2013/)
2. Glogal Crowdfunding Report, http://www.crowdvalley.com/2013/10/17/crowd-valley-releases-global-crowdfunding-report/
From the Wikipedia:
"In 1997, fans underwrote an entire U.S. tour for the British rock group Marillion, raising $60,000 in donations by means of a fan-based internet campaign.[citation needed] The idea was conceived and managed by fans without any involvement by the band, although Marillion has since used this method with great success as a way to fund the recording and marketing of its albums[citation needed] Anoraknophobia, Marbles, and Happiness Is the Road.
The United States based company ArtistShare (2000/2001) is documented as being the first crowdfunding website for music followed later by sites such as Sellaband (2006), IndieGoGo (2008), Pledge Music (2009), Kickstarter (2009), RocketHub (2009), Rock The Post (2011) and in the UK Sponsume (2010) and PleaseFund.Us (2011).
Franny Armstrong was a pioneer of crowdfunding in the production of the eco-movie The Age of Stupid starring Pete Postlethwaite. The film was crowd-funded by a 450,000 budget being raised by selling "shares" to 223 individuals and groups who donated between 500 and 35,000.
Morton Valence are an early example of a relatively obscure band to independently enter into crowd funding without using a third party website such as sellaband. In 2007 Franny Armstrong discussed her project with bandleader Robert "Hacker" Jessett who adapted it to work for the independent music business raising 20 000 to record and promote the concept album Bob & Veronica Ride Again.
The Professional Contractors Group, a trade association for freelancer workers in the UK, was founded on the internet in 1999 when Andy White put out a call for 2,000 contractors to pledge 50 to raise 100,000 so he could start the organisation. 5 days later 2002 people had pledged the money and so the organisation was born. Today it has over 14,000 members and is a thriving trade association.
Crowd funding's earliest known citation was by Michael Sullivan in fundavlog on August 12, 2006." (http://en.wikipedia.org/wiki/Crowd_funding)
According to Ross Dawson in Getting Results from Crowds:
from which funders can receive tangible benefits.
qualities of the incentive and the passion and enthusiasm of those behind the project.
crowd to receive feedback and create a community of potential customers and evangelists.
philanthropic funding." (p. 117)
Janelle Orsi, SELC:
Offering any kind of investment opportunity is an activity that is highly regulated by both state and federal law known as securities law. These laws were passed early in the last century to protect investors from slick pitch artists who traveled across the country selling worthless investments. Kansas adopted the first securities law in 1911 to keep Kansas money in Kansas and help local farmers and small businesses rather than enriching New York Stock Exchange speculators and gamblers. Ironically, these laws now make it almost impossible to invest in small businesses in our communities and pretty much compel us to invest in the New York Stock Exchange. In the name of protecting investors, securities laws now make it very difficult to raise money with crowdfunding. The basics of these laws is that before any investment opportunity can be offered, the person making the offering must file extensive disclosure documents with the federal government, as well as any state in which the offering will be made. There are some exemptions to this general rule, but even the exemptions take securities law expertise to comply with. The result is that anyone offering an investment opportunity may have to spend thousands in legal fees and filing fees before even being able to mention it to any potential funders. Generally, if you bring on a large, wealthy investor, the legal compliance required is minimal because the law assumes that these people and companies need much less protection (they are defined as accredited investors under the securities law). The moment you want to offer an investment opportunity to the public and to non-wealthy investors, the legal requirements become far more onerous. Failure to comply with these requirements can, at a minimum, result in having to return all your investors money. At worst, there could be civil and even criminal penalties. (http://www.shareable.net/blog/crowdfunding-and-the-law)
Some stats from the U.S., by Victoria Silchenko:
"A Global Entrepreneurship Monitor (GEM) study revealed that out of the $51 billion invested in start-ups by individuals in 2010, only $9.4 billion was committed by angel investors (formal investors) while the bulk of capital, $41.6 billion (81%), came from friends and family. What about VCs? Let's look at the data from the National Venture Capital Association (NVCA): in 2010, venture capitalists invested approximately $22 billion into about 2,750 companies, 36% of which received funding for the first time. Now let's compare the numbers: in 2010 we had $41.6 billion coming from friends and family, aka "informal" investors, fearlessly backing up start-ups and only $22 billion from the VCs committing to both: start-ups and established business. Are you thinking what I'm thinking?
More recent data from GEM confirms that in 2011, 4.8% of the U.S. population personally provided funds for new businesses while only 1% of the population was represented by formal or accredited investors (must have an annual income of at least $200K or over $1 million in liquid net worth) along with venture capitalists. Alas, the last were not much of a help to the majority of entrepreneurs - 95% of business plans received by the accredited investors and VCs were rejected.
From my frequent talks with VCs, I've collected even more astonishing numbers - on average a VC reviews 2,000 business plans annually while choosing to invest in just 3-5 ventures per year. So, your probability of getting funded by a VC is 0.2%. On the flip side, one of the VCs told me that he has to raise capital himself most of the time and is often sad to let the company go - moreover, he wouldn't be surprised to find out that his "rejected portfolio" would perform better than the acquired one. What? Does it mean that we might miss the next Mark Zuckerberg? And who holds the cash anyway - money that might have been invested in the emerging ventures otherwise?
The enlightening answer has arrived from the Federal Reserve. It turns out that large U.S. corporations currently hold about $1.73tn (50% more than they held in 2007) and banks keep in their reserves an estimated $1.5tn in excess. Realistically speaking, can we expect such cash hoarding to be unleashed any time soon with a goal of rescuing small businesses under the premise "too small to fail because nobody will notice anyway"? You get the point.
Needless to say, entrepreneurs in the U.S. are waiting with their hands up for the SEC to arrive with new solicitation and general legislation rules that would allow them selling shares over the Internet utilizing the equity- based crowdfunding model. Yet, some of them have already employed an altruistic or reward-based crowdfunding model which is operational today. If you are a small business owner or have a creative project, chances are you are familiar with Kickstarter , IndieGoGo or GoFundMe - crowdfunding platforms with the investment proposals spanning from film makers to innovators offering non-financial incentives for micro-sponsors. Furthermore, last week Lockitron released a crowdfunding software under an open source license and launched Selfstarter - a ground-breaking platform which would allow inventors to set up their own crowdfunding campaigns.
Interestingly, the long awaited crowdfunding model where micro-investors take an equity part in the company, has been already operational in the UK for over two years, in Australia for seven, and recently was legalized in Italy by the Monti government. My Italian friend commented after that legislation: "I must say that this is a time I am proud to be an Italian!"
Overall, according to Crowdsoursing.org , the company that does an admirable job tracking the industry numbers and trends, the crowdfunding platforms raised $1.5 billion in 2011 - still a tiny number in global terms but the growth is impressive: 72% from $854 million in 2010 and almost a triple jump from the $530 million raised in 2009. The study forecasts further growth which is expected to be almost doubled this year reaching $2.8 billion globally." (http://www.huffingtonpost.com/victoria-silchenko/why-crowdfunding-is-the-n_b_1990230.html)
Many examples below are from http://get-paid-to-ppc.blogspot.com/2007/01/types-of-crowdfunded-projects.html
Sellaband has the following model:
"The site basically gives you a MySpace type page to exhibit your mp3s, but instead of friends, you get believers. These disciples of your rock scripture invest in your music at $10 increments until youve raised $50,000. Then, the magic happens at the studio, your faithful get a copy of your album, and the songs are posted online for free. For every download, you and your financiers, the original believers, share in ad revenue. (More details here.)
By deferring the cost and talent of scouting to a large population of music lovers, SellaBand puts powerful marketing and production tools into the hands of those with a personal interest in the music. Potentially, this is a perfect service for bedroom musicians who think they have the next big thing but have no exposure. Its one of several examples of crowdfunding." (http://newassignment.net/blog/keith_axline/dec2006/06/music_makes_a_ca)
i am verity: "Fans can become a "future owner today" by helping to raise $80,000 for recording costs and charity benefits. In essence, the artist is asking people to buy an album before it exists... so that it can exist. Also, 5.3% of money earned will be used to help others succeed (vague). Another 5.3% of everything earned goes to "People Opposing Woman Abuse's" work in South Africa. Once the target of 5000 albums is sold, The hope is to increase the percentage put towards these charities and make a difference in South Africa." [7]
A Swarm Of Angels is a peer funded film project witht the following model:
"A Swarm of Angels is about making a 1 million movie and giving it away to one million people in one year. By using the Internet to gather together 50,000 people willing to pay 25 to join an exclusive global online communityThe Swarmthe projects ambition is to make the worlds first Internet-funded, crewed and distributed feature film."
See also: ASOA Faq page, Open Business blog entry and discussion
Have Money Will Vlog "is a project that involves a group of volunteers that act as advocates for vlog proposals. The advocates promote projects they believe in to potential donors, whether they are friends and family or reaching out to those who subscribe to their blogs and related mailing lists etc. It's a very intimate affair that relies on Crowdfunding to reach the pledge drive's goals." [8]
"fundavlog is an experimental project that will attempt to sustain and/or incubate videoblog related projects and events by growing a Crowdfunded Network offering configurable 'payment pages' with simple funding functionality. Reciprocity and Transparency are the core basis in order to build a trusted attention network of people who are interested in the videoblog culture. Users deposit money into the fundavlog bank which they then can use to fund various types of entries submited by other users." [9]
Laragh Finance: "A company that raises funding for businesses using the crowd funding concept, private placements are no longer only accessible for high net worth individuals and big institutions. A large group of small investors can together come up with the total capital a company need to execute its business plans." [10]
Crowdcube.com is the worlds first crowdfunding platform enabling startup companies to raise funding by offering real equity. Uniquely, Investors can invest very small amounts of money (minimum 10) allowing the average Joe to build their own investment portfolio. See also: Crowdfunding definition, examples and latest news
PeerBackers peerbackers is a new way to fund entrepreneurs. It is an online funding platform that allows business owners to raise capital from their peersin small incrementsin exchange for tangible rewards to those who contribute.
Seedups Seedups is a new way to fund entrepreneurs, using a reverse auction procedure. The crowd of investors get a real equity stake for their investment.
IPO Village First of its kind, equity crowdfunding platform for upcoming Nasdaq IPOs. Utilizing a crowdfunding platform to give small companies the ability to go public without the use of an underwriter syndicate.
(could mean "U.S.")
1. Compiled by Venessa Miemis [11]:
- kickstarter http://www.kickstarter.com/ - Indiegogo http://www.indiegogo.com/ - crowdfunder http://www.crowdfunder.co.uk/ - peerbackers http://peerbackers.com/ - chipin http://www.chipin.com/ - fundable http://www.fundable.com/ - citizen effect http://www.citizeneffect.org/index - revenue trades http://www.revolutiontrades.com/ - rockethub http://www.rockethub.com/ - sonicangel http://www.sonicangel.com/ - spot.us - startnext http://www.startnext.de/ - ulule http://www.ulule.com/ - cofundos http://www.cofundos.org/ - buzzbnk http://www.buzzbank.org/ - biracy http://www.biracy.com/
- 40billion http://www.40billion.com/ - appbackr http://www.appbackr.com/ - capangel http://www.capangel.com/ - cofundit http://www.cofundit.com/ - crowdcube http://www.crowdcube.com/ - crowdfund http://www.crowdfunding.co.za/ - digital garage http://digitalgarage.co.za/ - globeforum http://www.globeforum.com/ - growvc http://www.growvc.com/main/ - innovatrs http://innovatrs.com/ - investiere http://www.investiere.ch/ - podium ventures http://podiumfunds.com/ - profounder http://www.profounder.com/ - raisecapital http://www.raisecapital.com/home.php - seedups http://www.seedups.com/ - seedmatch http://www.seedmatch.de/ - trampoline http://crowdfunding.trampolinesystems.com/ - vencorps http://www.vencorps.com/ - venture bonsai http://www.venturebonsai.com/ - wealthforge http://www.wealthforgeonline.com/ - wiseed http://www.wiseed.fr/wicket/web/accueil - FriendsClear http://www.friendsclear.com
(http://www.quora.com/Crowdfunding/What-are-some-great-crowdfunding-websites)
2. Compiled by Suresh Fernando:
(Suresh has a table with the following info: *Organization* *URL* *Specific Vertical Focus* *Online Community and/or collaboration[1] <#1312a50fbeb8a72d__ftn1>* *Support Recurring* *Funding* *Support Pooling of investor funds[2] <#1312a50fbeb8a72d__ftn2>* *Support Pooling of Investee Projects* *Develop Funder Fundee Partnership* *Support Micropayments*)
Compiled by Ronald Kleverlaan (in Quora):
crowdfunding - creative
crowdfunding - open business investment
(http://www.quora.com/l/d9ff4wwP8e)
Starting from Spain...
Goteo
see also Crowdfunding as the trojan horse of the commons
Johannes 24.8.11
Specific forms of crowdfunding:
See also:
See also:
Go here to read the rest:
Crowdfunding - P2P Foundation
Comparison of crowdfunding services – Wikipedia, the free …
Crowdfunding is a process in which individuals pool money and other resources to fund projects initiated by other people or organizations. Crowdfunded projects may include creative works, products, nonprofit organizations, supporting entrepreneurship, businesses, or donations for a specific purpose (e.g., to pay for a medical procedure). Crowdfunding usually takes place via an online portal that handles the financial transactions involved, and may also provide services such as media hosting, social networking, and facilitating contact with contributors.
Crowdfunding is donation-based fundraising for businesses or creative projects, typically via an online funding portal. Some but not all crowdfunding projects offer contributors rewards, which may differ based on the amount of money donated. Rewards can include copies of a creative work, products created with the funding, special or personalized incentives (such as autographed works or promotional merchandise), or public recognition.
In equity crowdfunding, a crowdfunding approach is used to raise investment capital and contributors receive equity in the resulting business. Contributors may act as investors and receive shares directly, or the crowdfunding service may act as a nominated agent.[1]
There are two basic models provided for some sites offer a choice between them:
Some services invite people to donate to projects for the pleasure of giving. Philanthropy based services usually have other benefits such as tax credits or rebates.
Crowd funding can be used to raise capital (equity) or borrow money. While organized informally, they typically involve large numbers of small investors or lenders:
Some services allow for 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.
Some services invite people to award creators after they already published their work.
Read this article:
Comparison of crowdfunding services - Wikipedia, the free ...
Fundraising Script,Crowd Funding Script,Crowdfunding …
What is fundraising?
Fundraising has been typically associated with the non-profit organizations; it is an act of collecting money for various non-profit organizations that serve different purposes and help the society. However, today, it has a new definition. Fundraising is not only limited for social services or causes. Even for business purposes, fundraising can be a great idea for the improvement and betterment of new business plans and functions.
Why us?
Rockers Technologies has already created the solution for fundraising. Anyone intends to raise funds for any cause can buy this solution from us to see rocketing change in incoming funds. One can directly start own website with this solution. More than 2 years of experience in this segment and pool of experienced and skillful developers help us to bring changes in the fundraising script in case client needs some updates. We understand that each client has different objectives so we offer customized solution. You tell us your objectives, and we will come up with modified script that suits your requirements.
See the article here:
Fundraising Script,Crowd Funding Script,Crowdfunding ...
The Life Chest: Crowd Funding Video – Video
The Life Chest: Crowd Funding Video
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The Life Chest: Crowd Funding Video - Video
THIS TOKYO #FASHION BRAND GIFT CLOTHING & ACCESSORIES SURPRISE! #THIStm – Video
THIS TOKYO #FASHION BRAND GIFT CLOTHING ACCESSORIES SURPRISE! #THIStm
Anonymous Crowd Funding Request: http://cf.thistm.com ( Only you will know of your anonymous crowdfunding act of loving kindness ) Sincerely, Buddy Jackson phone: (213) LET-THIS *Details:...
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THISSee the original post here:
THIS TOKYO #FASHION BRAND GIFT CLOTHING & ACCESSORIES SURPRISE! #THIStm - Video