Friday, February 17, 2012

More About Crowd Funding

A few weeks ago, I wrote the post "What Is Crowd Funding and Does It Really Work?". I wanted to follow up and give some more info on crowd funding. A quick google search will reveal many, many websites offering crowd funding. Below are a few examples of some of the better-known sites.

From their website: Kickstarter is the world's largest funding platform for creative projects. Every week, tens of thousands of amazing people pledge millions of dollars to projects from the worlds of music, film, art, technology, design, food, publishing and other creative fields.

A new form of commerce and patronage. This is not about investment or lending. Project creators keep 100% ownership and control over their work. Instead, they offer products and experiences that are unique to each project.

All or nothing funding. On Kickstarter, a project must reach its funding goal before time runs out or no money changes hands. Why? It protects everyone involved. Creators aren’t expected to develop their project without necessary funds, and it allows anyone to test concepts without risk.

Fees: 5% from the total amount collected + 3% third party fee (if you reach your goal)

From their website: Anyone can create a campaign, where you tell your story, set a funding goal, and offer perks to contributors. You can use IndieGoGo to create your campaign, share it with your network, engage fans, track information about contributors, and collect money. IndieGoGo provides excellent customer service, educational tips, and information tracking for campaigners and funders. We also promote campaigns through social media and press outreach, as well as on our homepage, in our newsletters, and on our blog.

Fees: IndieGoGo charges a 4% fee on the money you raise. If you don't reach your goal, the fee is 9% on the money you raise. If you have opted for Fixed Funding (all-or-nothing) and don't meet your goal, all the money raised will be refunded to the contributors and no fees will be incurred.

From their website: RocketHub is a launchpad and community for independent artists and entrepreneurs. We offer an innovative way to raise money (Crowdfunding) and tangible opportunities to take creative products and endeavors to next level (LaunchPad Opportunities).

Fees: 4% from the total amount if you do or do not reach your goal (plus 3-5% payment processors fees).

As you can see, I just listed a few points about each service. DO YOUR RESEARCH! What might work for one person may or may not work for you. As an ag entrepreneur, would you try crowd funding?

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