What is crowdfunding? Discover everything about corwdfunding and its features, and how to perform a corwdfunding. All the keys
There are many cases of known projects that have been able to get ahead thanks to the so-called crowdfunding on very diverse platforms through the Internet. We found among them the famous Pebble clock, the Android-based gaming console whose name was Ouya or the Oculus Rift virtual reality goggles, whose property later became the social networking giant Facebook. Several examples of which an attractive idea and sold of the correct form can count on the support of a very wide sector of interested people that allows to remove it ahead without needing resorting to the most traditional financing.
What is crowdfunding and its characteristics
Right from here we could extract the definition of crowdfunding as a dissemination mechanism by the interested party of a specific project with a view to being able to finance it jointly by independent creditors . These have motivations unrelated to a return on economic investment and contribute their grain of sand to carry out this purpose simply by sympathy or by some incentive in the form of the product that is to create (for example) within the shaping of the business .
The origin of this form of financing would be given by donations. Many are those that today crowdfunding away from the term funding when a classification is carried out in this sense, as there is no economic reward behind this action. In addition, many of the platforms that arise today as a meeting point for entrepreneurs and patrons to join interests (as in the case of Kickstarter) return the investors their economic contribution in case the minimum capital has not been reached in a determined period of time for the project to start.
Examples of crowdfunding
So, we found examples before the Internet and social networks gave an important boost. Both music and film have been very prone to this resource, given that the arts already count on themselves with a direct benefit to the patron in regard to the contemplation of the work. For example, the group of transgressive rock Extremoduro managed to finance their first album through this model, something that allowed them in 1989 to move to Madrid and record what was later a record that was very successful in the country. Something similar happened with the British band Marillion, when in 1997 their fans came to finance their tour of the United States.
In the cinema, the French Guillaume Colboc and Pommeraud Benjamin financed through the donations harvested by Internet their film Demain la Veille in the year 2004. In Spain we find another example with the film The difficult loves of the director Lucina Gil, responsible for carrying forward the project and winner of a Goya prize for this project. Some documentaries have also found a good ally in crowdfunding, as is the case of Durazno of Latin American origin.
How to make a crowdfunding
- Publication of the business proposal on a platform: as we have said before, it is necessary to find a meeting point for the entrepreneur and the potential interested in acting as a sponsor of the project. When you disembark on one of these platforms, you must first identify the economic goal that needs to be achieved, as well as the incentives in the form of a reward for each type of economic contribution that will be made.
- Dissemination of the project: if funding comes from unknown investors, one of the main objectives is to disseminate the information as widely as possible. The information channels that are specialized in the sector in which our business idea moves are the ideal places. Having a strong presence in social networks can also generate enough community to motivate donations to the project.
- Collection: once the established period of time has elapsed for donations to reach the stated economic objective, if the goal has been achieved, the transfer will be a matter of very little time, and thereafter the project will be able to go returning the promised incentives to investors. On the other hand, if the objective has not been reached, the money is returned, and then the crowdfunding action can be proposed again, modifying the proposal sufficiently.
The most outstanding advantage of this method of financing is none other than the possibility of being able to carry out a project that traditional methods would not support because it is more daring, risky or innovative. In addition, it is not linked to a loan, although a commitment is made to compensate the investor with what has been promised during the proposal proposal on the chosen platform. The disadvantage is clear, and it is the difficulty that a large spectrum of people apparently seemingly disinterested bet on the idea. It is necessary that the idea impacts, attracts and, in addition, can be broadly disseminated through the most important information channels in the country.