Crowdfunding Platforms and the Types

What is crowdfunding?

Crowdfunding was started primarily by Kickstarter.com in 2009. Crowdfunding is a method of funding projects by means of using huge crowds of people donating. This is done mainly by the internet and platforms designed to collect money. People have done crowdfunding for disaster relief but we will talk about it in a business related way. More about crowdfunding on Wikipedia.

Legal limits to crowdfunding

There have been laws setup to prevent solicitation of public funding for equity so these crowdfunding platforms get around it by offering an item of value in return for the different tiers of their donations. A lot of times the rewards end up being a pre-order while lower tiers offer things like a post card or their name on something. Sometimes they just offer a thanks in email form.

Some reasons for these laws can be related to how stocks are setup for corporations and to prevent all sorts of disasters from uncertified investors investing and then getting nothing. Many times the crowdfunded projects don’t actually send out the rewards they promised for various reasons. Sometimes because they aren’t good people but a lot of times it is because of complications with the project. The folks being crowdfunded are not legally obligated to send out the rewards but they are supposed to by something like a good faith agreement.

Legal changes to the equity situation

Changes to this landscape have been in the works. In early 2013 the first part of the JOBS Act came through that would allow equity to be exchanged for the money given to these crowdfunding projects. It will not be in full effect until later in 2013 when they actually figure out what they want to do with the whole thing. As with most governmental processes, this may take longer than the dates they set forth. We will see. More about the JOBS Act on Wikipedia.

If you have trouble finding the crowdfunding platform for your specific needs, I recommend you read 22 Crowdfunding Sites (and How To Choose Yours!) by Inc.com

Funding Platforms

Equity programs available when JOBS Act is completely passed

Other

UK (United Kingdom)

France Platforms

Italian Platforms

See More


Crowdfunding Advice

Crowdfunding can be a hard thing to do and to maximize your chances of success we are listing a bunch of crowdfunding advice. There are websites, articles, etc.

See more

Your Own Crowdfunding Campaign Website

There are ways to run your own crowdfunding campaign without the use of the platforms listed above. You can get a WordPress template that is designed for it.

See more

Free Crowdfunding Exposure

Places to post your crowdfunding campaign to for free exposure:

Crowdfunding ToolThere are general trends and a tool has been developed to find out if a Kickstarter campaign is likely to pass or fail.

Crowdfunded Product Stores

There has been a new wave of stores that are popping up that are to sell the items you see on Kickstarter and other funding platforms.

Crowdfunding News

[psCode: PostAdvisorFormBlock]

4 Responses to “Crowdfunding Platforms and the Types”

  1. Alf71

    Crowdfunding articles
    Hacking Kickstarter: how to raise $100,000 in 10 Days, T. Ferriss
    7 things I learned from a (unsuccessful) crowd-funding campaign, Z. Martin
    The dynamics of crowdfunding: determinants of success and failure, E. Mollick
    Why (some) Kickstarter campaigns fail, S. Godin
    Kickstarter white paper part 1, L. Moyer
    Kickstarter white paper part 2, L. Moyer
    7 video tips for crowdfunding campaign magnetism and results, E. Mott
    Crowdfunding tips, Nesta
    Emerging next generation crowdfunding platform-roundup, K. Scharwath
    7 ways to craft a kickass crowdfunding video, I. Mack

Leave a Reply

You must be logged in to post a comment.