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.

Kickstarter.com

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)

Indiegogo.com

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.

Rockethub.com

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?

Penn State Extension and Agricultural Entrepreneurship

There has long been debate about whether entrepreneurship can be taught. I often tell folks that being an entrepreneur is like being an artist. Anyone can draw a portrait of a landscape, say, but some people will be better able to convey colors, shadows, perspective, distance, etc. Likewise, anyone can operate a business or undertake new ventures, but some will be more successful because they have a skill set that enables them to manage and lead better than others can.

Just as you might learn elements of art in a basic course, it is wholly possible to learn elements of entrepreneurship. Management skills such as business planning, marketing, financial management, etc. are all taught in universities around the world. Entrepreneurs put these pieces together to take advantage of opportunities to create new ventures or make existing ones better.

Penn State Extension offers training for agricultural entrepreneurs.

• "Income Opportunities in Agriculture" is a one-day workshop that provides opportunities to learn from other entrepreneurs about their ventures.
• "Food for Profit," usually offered in one day, provides important management information for those interested in small-scale food business. Participants learn about business management as well as food safety practices, etc.
• "Annie's Project" is multi-session course targeted to women farmers. It provides training on managing farm risks in a way that best suits the unique learning styles of women.
• "Exploring Your Small Farm Dream" is a multi-session course targeted at people who have a few acres and who are thinking about a farm venture.
• "Your Future in Focus" is a multi-session course designed to walk participants through a business planning process. At the end, participants will have learned about the many facets of farm business management and should also have a draft of a written business plan.

In addition to these curriculum-based educational activities, we also offer many workshops and courses on topics including financial management, farm succession planning, marketing, etc. Our goal is to provide training on the management skills needed to be a successful entrepreneur. As with artists, some will combine those skills more successfully than others. However, without these skills, the business owner is at a competitive disadvantage and is likely to fail in their venture.

As Extension State Program Leader for Entrepreneurship and Value-Added Ag, I am really proud of the depth of programming we have to offer. Even with this, we are working hard to improve our programs to meet the needs more effectively. I'll keep you in the loop as we move forward. If you have any questions about our programs, contact me at jeffhyde@psu.edu.