Well it has been a long time since I started exploring crowdfunding ideas as I myself was hoping to inspire or rather, inspire OTHERS about my journey through a successful crowdfunding campaign to help get me into New York Film School. Well, guess what? It finally happened! I used the simple crowdfunding campaign called GoFundMe to help secure the funds I needed! 3380 Euros were raised in just a month!
From my mum to my friends, to all their friends and beyond. This is how viral social media marketing works at its best, in order to help somebody pursue their dreams! You cannot imagine all of the success stories of families trying to get medical bills covered they could not before, or a business startup idea that needed just a little bit of leverage to get going, to MY DREAM OF FILM SCHOOL!
One of the neatest stories that came out recently had some New Zealand ties and it is one that means you better get your tissue out. Infertility or adoption fees are now a big push in the crowdfunding arena, and you can read about this couples amazing journey here
The funds I have received are in order to covers my flight costs, a deposit on the flat I am sharing with another new student, and just enough funds to get my through the first month until I get a job while studying! Never give up on your dreams and follow my blog to see how things go for me and I will also keep sharing insights into crowdfunding around the world!.
Well it has been over a year now since New Zealand encouraged and supported crowdfunding with legislation.
When you think that our overall population is 4.5million so what has been achieved our first year is quite amazing.
- $12.4 raided in over 21 New Zealand Companies.
- $2 million raised by tow companies ( regulated maximum amount).
- 6 companies reaching their own self imposed maximum targets.
- $700,000 successfully raised by the first equity crowdfunding campaign
- 78% successful campaigns
There are now a number of platforms operating:
The above are the Platforms that support the cultural sector.
I found some information on a couple of crazy marketing ploys that I thought I would share ( all from Pledgeme)
- A promise to shave of his beard from an artist raising money to replenish his stocks after a large project
- Pledging to wear a panda onesie on a flight to Chicago and provide photo evidence of said event!
- Christchurch art gallery trying to raise funds to buy back Michael Parekowhai’s bull sculpture made free use of the word bull in their marketing, instances of, “Unbullievable” Bull-iever” “Unstoppabull” “Unbelieveabull” an excellent use of puns I think.
As the year ends what happening with me? Well I didn’t raise enough money to go abroad although an aunt decided she would assist me but I finally decided I would stay here in New Zealand so i am applying to the New Zealand Film & Television school @ Whitireia Polytechnic I am going to start a new blog for my experiences there but I think I will keep this one going for longer as crowdfunding is certainly something I think is the way forward and who knows I might one day might need it to fund one of my film projects.
I’ve been going on and on about crowdfunding in my previous posts, so I thought I should just advice you that even though crowd funding is a super way to raise much needed capital needed for your start up, it will require some thought like knowing which type of crowdfunding will be suited to your project. Certainly if your company’s resources are stretched to the limit, crowdsourcing and play an important role with your content marketing for instance. It is important to research some projects similar to yours and look at the platforms they did well on. For instance we all know that Kickstarter is a popular crowdfunding sites, but you need to discover that there are drawbacks to using it such as their being no marketing help.
Crowdfunding opens up a new world of opportunity to startups, opening up chances for capital to flow into a startups. This has benefits all round as new companies mean new job opportunities. If you’re a start up in New Zealand, there are open-format websites which educate the public on the topic of crowdsourcing, offering plenty of crowdsourcing resources and guides. I’ll say it again – creative crowdsourcing is a very useful tool and because content marketing is about people increasingly sharing online, it is important, if not critical to maintain fresh content to maintain sharing of ideas
You have got a great business idea but the bank does not believe you will do good. Borrowing from friends and family used to be an option, but not anymore. Getting funds from a large number of investors does not make the money a cheap source. There are basic questions to be answered. If you answer them correctly your company will rock. Following are the questions and tips to answers:
- How much money should be borrowed?
- Tip: Work backwards and figure out all components required to complete a project or dispatch an order. Very important thing to remember is add profit.
- From whom it should be borrowed?
- Tip: Remember owner’s money is most expensive source of money. However I suggest you to discuss with experts when it comes to interest rates and loan terms.
- Where it should be used?
- Tip: When money goes out, it either becomes an expense or creates an asset.
Using money from sales:
- Assuming income through sales has the ability to pay first three stakeholders in order of payment i.e.
- Hoping the business still has money in form of net profit following questions need to be asked:
- How much should be reinvested into the business?
- Tip: If sufficient money is not reinvested then business has to again borrow.
- What borrowings need to be repaid?
- Tip: pay off expensive borrowings like credit cards and overdraft.
- How much should be distributed to shareholders?
- Tip: Investors will invest only if they can believe you can make more money with their money than they could have made with their own money.
Its the fact that so many businesses are battling to stay afloat that has made crowdfunding being seen as a lifeline. Some businesses are unfamiliar to crowdfunding and are not yet aware of the benefits. The way it works for a small business is that the business creates a profile of their products and services for instance, and through a video they reach hosts of readers. On the video they will offer a reward for a donation. The thing with crowdfunding is that its actually not all about funding, though that is the most important part.
Your business can also gain some visibility, more so if you consider some media coverage such as a including a feature on your business in a popular local newspaper for instance. Crowdsourcing- or funding shouldn’t just be seen as a means for asking for handouts. You’ll need to make use of email distribution lists and social media to reach your goals.
You can’t forget that you are actually getting funding from your fans around the globe. Your project or product should be so appealing to like minded people that instead of more or less begging for a loan, you’re connecting with people who love what you offer and are forthcoming with donations.
You’ve just got to remember that with crowdfunding you’re actually reducing business risks too because Crowdfunding is actually a way to test the market to see if the product you want to sell has got what it takes and if people are willing to part with their money in exchange for your innovative offerings.
Crowdfunding is becoming popular choice as financial choice. Businesses around the world are following in the footsteps of others. In this post we will try to examine the concept and how it helped build companies which have been sold to social networking giants. Here are a few crowdfunding campaign success stories.
- Ouya – Ideas poured in so did the dollars for this game console company. The open-source company raised an amazing $8.5 million in less than 30 days.
- The Pebble E-Paper watch – The most successful of all the crowdfunding campaigns. Pebble offered a unique offering a smart watch and were able to raise more than $10 million in 37 days. The campaign was also an education as Pebble failed to deliver its promise. They could deliver the product only after 10 months went by.
- Oculus Rift – A crowdfunded company which offers a virtual reality headset for gamers. It was a raging success with great potential. Facebook saw the potential and acquired by Facebook. These famous buyers lend a helping hand to the crowdfunding concept.
- 3Doodler– A 3D printing pen that allows lets you draw in three dimensions. The drawings are stable and solidify later to a real structure. The idea was so popular that break-even was reached in less than a year.
- Scanadu Scout – The device developed monitored vital body signals like temperature, respiration and stress and delivered a report on your smart phone. In a few months major companies were part of the crowdfunding for this technology.
Crowdfunding as a concept has helped the ideas on a large-scale. With the concept coming in great ideas which would have been in hibernation came out in the open.Ferratum also supports few of the crowdfunding campaigns with their simple cash products.You can read about it all here.
After several posts, I thought of again going into the roots of crowdfunding. Every day I get more and more readers, and as well does the blog grow, even more does the popularity of crowdfunding.
Before, even some years ago, when someone needed money to finance a project or idea, the only available options would have been to ask for a credit, sell a property or ask someone to lend him some money. Nowadays, there exist new options to help you afford the creation and beginning of your new project and bring it to life.
Crowdfunding is a new way of externalizing different tasks that were traditionally performed by an employee or contractor. This is now carried out by a group of people, who can know each other or not, and a community. All of this is about an open calling, asking human beings to support and finance a specific cause.
Some of this “Open Source” projects promise their financiers specific goals and/or results. It is by this means that money is raised, under the commitment of getting a specific amount of money to be able to run and execute a project with specific results already planned.
According to one specialist, crowdfunding is based on the idea that wealthy people trust individuals rich in ideas, and they work together and therefore make they come true.