Crowd funding

From ElateWiki

Crowd funding (or crowdfunding) describes a collective fundraising/financing structure, developed almost exclusively through websites and social media, that is intended to raise money by pooling small donations from supporters (also called “backers”) of the promoted individual or group. Crowd funding may also describe an equity financing effort on behalf of a company to sell investments to a large number of small investors. Crowd funding is a relatively new development in the world of fundraising and financing, but has its roots in traditional co-op organizations and other collective efforts like crowd sourcing.

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Crowd funding sites

Generally, crowd funding efforts revolve around a website used to provide information about the project, collect and record the donations, provide a place for supporters to meet and discuss the project, and give feedback to supporters concerning the status of the project or fundraising effort. Many projects also include rewards as an incentive for potential supporters which often vary dependent upon the amount of money donated.

A number of crowd funding portals have been developed to simplify fundraising and financing efforts. These sites offer an array of services, but most have a focus for the type of projects promoted through their site. A few of the more popular crowd funding sites and their focuses are:

Kickstarter is a funding platform for creative projects. Everything from films, games, and music to art, design, and technology. Kickstarter is full of ambitious, innovative, and imaginative projects that are brought to life through the direct support of others.
Fundable is a funding platform for startups. We provide entrepreneurs with the tools they need to showcase their deal to potential customers and accredited investors.
Indiegogo is a crowdfunding platform where people who want to raise money can create fundraising campaigns to tell their story and get the word out. Indiegogo is also a place to discover what people all over the world are passionate about and how to get involved.
ArtistShare is a platform that connects creative artists with fans in order to share the creative process and fund the creation of new artistic works.

Kickstarter Basics: How to create a project?

1. Open the Kickstarter website

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<http://www.kickstarter.com>

2. Create a login with the necessary details

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3. And after successful login, Click the green "Start Your Project" button on the Start Page

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That will take you through the process of building your project. All projects must meet Kickstarter's project guidelines and all creators must meet eligibility requirements.

Kickstarter Basics: How to Back a project?

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To pledge to back a project, just click the green “Back This Project” button on any project page. You will be asked to enter your pledge amount and select a reward when applicable.

  • For US projects, you will go through the Amazon checkout process
  • For UK projects, you will check out through Kickstarter

Kickstarter Basics: How to Discover Interesting projects?

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There are a bunch of ways to find cool projects:

The Kickstarter Newsletter: Once a week Kickstarter will send a hand-picked email of three projects worth checking out.

Your friends: Connect your Facebook account to Kickstarter to follow your friends and check out the projects they're backing.

Staff Picks: The Staff Picks section collects standout projects selected by the Kickstarter team.

Popular: The Kickstarter algorithms display the projects making the most waves. The main popular page is the best view: three of the most popular projects in all 13 categories.

The Internet: Kickstarter projects are often big news on social media and in the press. This is how many projects are discovered.

Kickstarter Basics: Can Kickstarter be used to fund anything?

Kickstarter allows creative projects in the worlds of Art, Comics, Dance, Design, Fashion, Film, Food, Games, Music, Photography, Publishing, Technology, and Theater

Kickstarter Queries: Why do people back projects?

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A lot of backers rally around their friends' projects. Some support people they've long admired. Many are just inspired by a new idea. Others are inspired by a project's rewards — a copy of what's being made, a limited edition, or a custom experience related to the project.

Backing a project is more than just giving someone money, it's supporting their dream to create something that they want to see exist in the world.

Kickstarter Queries: Core strength of Kickstarter

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All-or-nothing funding is a core part of Kickstarter and it has a number of advantages:

It's less risk for everyone: If you need $5,000, it's tough having $1,000 and a bunch of people expecting you to complete a $5,000 project.

It motivates: If people want to see a project come to life, they're going to spread the word.

It works: Of the projects that have reached 20% of their funding goal, 82% were successfully funded. Of the projects that have reached 60% of their funding goal, 98% were successfully funded. Projects either make their goal or find little support. There's little in-between.

To date, an incredible 44% of projects have reached their funding goals.

The Impact of Kickstarter, Creative Commons & Creators Project | Off Book | PBS

The internet has intensified connections between people across the planet. This episode takes a look at the impact of the new inter connectivity on the art world. Traditional funding models are dissolving, new forms of expressing ownership have arisen to accommodate for remix culture, and artists are finding ways to connect physical art experiences and traditions to the internet.

In the digital era, the experience of art from the perspective of the artist and the art audience is shifting rapidly, and bringing more people into the creative process.

References

  1. http://www.youtube.com/watch?v=024vLBBJf4I
  2. http://www.kickstarter.com/help/faq/kickstarter%20basics?ref=home_learn_more
  3. https://www.fundable.com/FAQ
  4. http://www.indiegogo.com/indiegogo-faq
  5. http://artistshare.com/v4/About
  6. http://en.wikipedia.org/wiki/Comparison_of_crowd_funding_services
  7. http://www.google.co.in/imgres?q=crowdfunding+images