Well, collecting funds from all team members and applying for loans to banks are two things that most people think about, while the first option seems to still be impressed as a concept that doesn’t make sense to many people. In fact, there are many large and extraordinary projects or campaigns that eventually have to be stopped due to lack of funds.
Most of the project or campaigns funded through online crowd funding began with funding failure. When creating a large project or campaign, you often forget about funding; you and team members spend more time and thoughts on concepts or other things and override funding.
“We’d think about it later”, that’s the phrase that most often comes out of all team members when talking about funding.
Until it was time to take care of funding, they realized that they needed large funds. Collecting funds from all team members often fails to meet funding needs for a project or campaign. The bank also requires us to go through a series of long processes that sometimes only produce “No” or “Sorry”.
Banks are usually willing to fund project or campaigns that have been running for several years and have good financial conditions. Banks must be sure that their money will return or at least know that the debtor has an asset whose value is equal to / greater than the loan amount.
This policy makes it difficult for startups to get funds from banks. Meanwhile, team members’ finances are often very limited so efforts to get funds from people who give money away online can seem to be a good solution.
Many rich people want to provide financial support to certain projects or campaigns (as long as they are legal, logical, and they are profitable). They are happy if they see a project or campaign (especially those that are beneficial or beneficial for many people) to work well. All they need is a trustworthy fundraiser that can bring their money together with lots of extraordinary ideas.
Collecting funds online has become a common thing to do. Various non-profit organizations have done it first (although it is still limited to meeting the needs of the organization and not collecting funds for other parties). Many people who give money away online are already very familiar with online crowd funding.
With the existence of an online system, donors are not concerned about distance; they only demand that the site or organization raise funds to take full responsibility and select which projects or campaigns are worth funding.
People who give money away online see important details; one of them is a number. They will see how much you need and whether the amount makes sense or not. Do not ever think that investors or donors will only skip the details and give the money right away; wrong!
Investors and donors will definitely consult with people they trust (especially those in crowd funding sites) to ascertain the validity of the information you provide.
You can campaign for profit / non-profit projects on these sites. Besides you have to fulfill and follow the criteria and rules determined by each site, you also cannot miss some of the things mentioned earlier.
Investors / donors will contribute according to their interests. You can’t expect much; no matter how good the project / campaign that you create will not necessarily attract investors / donors. Just follow the process and wait. You can also campaign for your projects on more than 1 site to increase the chances of successful crowd funding you make.
Choose a site that matches your project / campaign. Ensure that existing policies and regulations do not conflict with your vision and mission. Many investors / donors will act as followers; that is, they will contribute only when someone else has contributed (they don’t want to take too much risk). This is reasonable considering that they might not meet you directly.
To make it easier for you to choose which sites you will use to do crowdfunding, we will give a little review on each site. We need to remind you that you cannot fully trust the information contained in this article; you must seek information from other sources to ensure the accuracy of each site’s information.
Kickstarter is a crowdfunding platform for creative projects. This platform limits the types of projects that will be funded, namely the for-profit projects. Entrepreneurs and artists are the ones who use this platform the most. Since its inception in 2009, Kickstarter has successfully funded more than 20,000 thousand projects and to date has raised more than 350 million dollars. Utopia and futuristic are two types of projects commonly found on this platform. However, each project must still fulfill the legality aspect.
Ways of working
You will propose your project to the platform and then the people in Kickstarter will verify your project. The verification process usually only takes a few days before your project will finally be loaded on this site.
You will fully entrust the success of crowdfunding from your project to Kickstarter and Kickstarter (as well as other similar platforms) does not guarantee the success of crowdfunding on your project.
Kickstarter will take part of the funds collected in return for the services they do. The amount to be taken by Kickstarter varies, depending on the size of the funds you want to collect. You will not be charged a penny if your campaign fails.
Kickstarter will campaign for your project through the sites and social media they have. You can also campaign for your own project and must include a link that has been provided by the platform.
Just like Kickstarter, this platform is only for for-profit projects. The platform works in almost the same way as the investment method. Investors will collect the amount of money needed by a project and then get a reward for the benefits of the project.
Rockethub is very selective in choosing the project(s) they will campaign for. Why? Because the platform wants all parties to feel benefited. Projects in Rockethub are usually projects that have been running for a certain time.
This platform might work like a bank, but obviously has a much simpler policy. Projects that are campaigned through this platform often manage to collect the required money targets in a relatively short time.
This platform handles both offline and online-based projects. They will carry out a series of verification processes including knowing the background of each person who is part of the team of the projects. They must ensure that people who give money away online are not giving their money for projects that will be used to fund illegal activities, terrorism and fraud.
Slightly different from Kickstarter and Rockethub, Crowdrise is a fundraising platform that does not only raise funds for for-profit projects but also for nonprofit projects (charity). This platform is one of many crowd funding platforms that often manage to raise funds for charitable activities.
To be able to get money from people who give money away online for charity purposes, you must have an organization that is registered and includes a series of evidence of the charity fund distribution that your organization has done.
Crowdrise has managed to raise millions of dollars several times to help victims of natural disasters and wars throughout the world. This is the right platform for those of you who want to help others around you. You must also include details of the allocation of funds collected.
You have to report to anyone, for whatever, and how much money donors use. This platform demands openness for the survival of the platform. They realize that when the funds collected are not used or not reported properly, it will impact other fundraising campaigns on the platform.
Indiegogo is a startup based in San Francisco, United States. This is a new crowd funding platform. The development of this platform is very fast. Currently, this platform is ranked 2nd in the most popular crowd funding platform in the world.
Nearly 200 thousand projects managed to raise funds through this platform (most are for-profit projects). Many people use this platform because it doesn’t work on other platforms. Simpler regulations allow startups to get funds from people who give money away online.
This platform is managed by people who have had years of experience in the field of online fundraising. This is what causes the high level of success of the platform. They would rather call the campaign an investment activity, not fundraising; fundraising seems like charity.
Most of the projects successfully funded by investors in this platform are engaged in technology and business. They usually carry revolutionary technologies or businesses that are considered to be able to provide big profits in the next few years.
Indiegogo will channel investors’ funds for several stages to ensure that the money collected is truly used properly and at the same time reduce the possibility of risk to investors.
Somolend is a crowdfunding site that specializes in SME funding. The platform is aware that SMEs can improve a person’s standard of living, create more job opportunities, and later can strengthen the country’s economy.
During this time, SMEs are often faced with bank refusal because, once again, banks prioritize businesses that have been running for a certain period of time. Somolend will play the role of a third party that guarantees SME loans that register their business to the platform.
Unlike some other sites that promote crowdfunding, this site will work with banks to provide very low-interest loans to SMEs. Somolend collaborates with several banks in the United States to be able to run the project. Somolend hopes that there will be more banks outside America who want to work together to help more SMEs around the world.
With the crowd funding platform, people who give money away online will be able to help various projects / campaigns that are not only financially profitable but can also be used to help more people in need. Those platforms enable more people to get “Yes” than “No”.